When the government runs deficit, it causes the cost of borrowing to:
A. increase, which decreases private demand for loanable funds.
B. decrease, which decreases private demand for loanable funds.
C. increase, which increases private demand for loanable funds.
D. decrease, which increases private demand for loanable funds.
A. increase, which decreases private demand for loanable funds.
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What role can the government play in correcting problems of imperfect information?
What will be an ideal response?
By far, the best way to measure the standard of living of people in a country is the value of the country's GDP per capita
a. True b. False Indicate whether the statement is true or false
If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:
A. MC = MR > ATC. B. MC = MR < ATC. C. MC = ATC > MR. D. MC = MR = ATC.
A monopolist responds to an increase in marginal cost by _____ price and _____ output.
A. increasing; decreasing B. decreasing; decreasing C. decreasing; increasing D. increasing; increasing