In the above figure, along the section of the demand curve between point a and point b, demand is
A) elastic.
B) inelastic.
C) unit elastic.
D) unit inelastic.
A
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Average fixed cost is measured by
a. AVC + ATC b. TFC/TC c. AVC – ATC d. TFC/Q e. TC – VC
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and reserves account in the context of the Three-Sector-Model? a. The quantity of real loanable funds per time period rises
and reserves account becomes more negative (or less positive). b. The quantity of real loanable funds per time period falls and reserves account remains the same. c. The quantity of real loanable funds per time period and reserves account remain the same. d. The quantity of real loanable funds per time period rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Which of the following is a short-run adjustment?
A. BMW constructs a new assembly plant in South Carolina. B. A local bakery hires two additional bakers. C. Six new firms enter the plastics industry. D. The number of farms in the United States declines by 5 percent.
If the nominal interest rate is 8 percent and the inflation rate is 2 percent, the real interest rate is approximately
A) 4 percent. B) 6 percent. C) 0.25 percent. D) 10 percent.