According to Classical interest rate theory, which of the following will increase the equilibrium interest rate?
A) A decrease in investment
B) A decrease in saving
C) An increase in money demand
D) A decrease in money demand
B
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The U.S. interest rate has ________ on the supply of dollars and has ________ on the demand for dollars
A) an effect; an effect B) no effect; no effect C) an effect sometimes; an effect sometimes D) no effect; an effect E) an effect; no effect
The income elasticity of demand for food
A) does not change when an individual's income changes. B) increases as an individual's income increases. C) decreases as an individual's income increases. D) is negative.
When demand elasticity is ____ in absolute value (or ____), an increase in price will result in a(n) ____ in total revenues
a. less than 1; elastic; increase b. more than 1; inelastic; decrease c. less than 1; elastic; decrease d. less than 1; inelastic; increase e. none of the above
A socially optimal equilibrium occurs when: a. the marginal social cost of a given level of output is equal to the marginal social benefit. b. the marginal private cost of a given level of output is equal to the marginal social benefit. c. the marginal revenue from a unit of a good equals the marginal cost of production
d. the average revenue from a unit of a good equals the marginal cost of production.