The better the information provided to financial markets the:
A. greater will be the flow of funds in these markets.
B. greater the amount of funds transferred between savers and borrowers, though risk increases.
C. higher the return required by lenders.
D. less the amount of funds transferred between savers and borrowers.
Answer: A
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The foreign purchases, interest rate, and real-balances effects explain why the ________.
A. aggregate demand curve is downward-sloping B. aggregate expenditures schedule may shift up or down C. aggregate demand curve may shift to the left or right D. economy will adjust towards equilibrium
Plurality voting fails which of the criteria for an ideal voting system?
A. Unanimity B. Independence of irrelevant alternatives C. Transitivity D. No dictator
Answer the following statement(s) true (T) or false (F)
1. In long-run equilibrium, perfectly competitive firms make zero economic profits. 2. In a constant-cost industry, cost curves do not change as output changes. 3. In an increasing-cost industry, cost curves decrease as industry output increases. 4. External diseconomies of scale involve factors that are mostly within the firm’s control. 5. A decreasing-cost industry is one where input prices fall as industry output rises.
The supply of real GDP is a function of
What will be an ideal response?