A change that increases the expected profit from holding a unit of product in inventory, ________ the expected marginal revenue curve and shifts it to the ________.
A) increases; left
B) decreases; left
C) decreases; right
D) increases; right
D) increases; right
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If MPC = 0.9, equilibrium real GDP is $1,000 . and full-employment real GDP is $2,000 . then how much should government spending change to bring about full employment?
a. +1,000. b. ?100. c. +900. d. +100. e. ?0.9.
Because there is a finite supply of a nonrenewable resource,:
a. it has inadequate substitutes. b. any use of that resource today will leave less available for tomorrow. c. such resources are replenished faster than they are consumed. d. the government subsidizes the extraction of such resources. e. any use of that resource today means the value of the resource will fall in the future.
If expected inflation is 12 percent and the publicly regulated electric utility company is legally limited to a 10 percent rate of return, then we should expect
a. increased investment by the utility. b. expansion of electric power generating capacity. c. future power shortages. d. excess investment by the electric utility.
Historically, which of the following has had the highest average annual rate of return?
a. corporate bonds b. money market mutual funds c. corporate stocks d. U.S. Treasury bonds