Other things equal, countries that offer investors higher rates of return attract more capital than countries that offer lower rates.
Answer the following statement true (T) or false (F)
True
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Which of the following is not cited as one of the factors that accounts for the large-scale production that exists in many sectors of the economy?
A) Economies of scale. B) Advertising and image differentiation. C) The minimum efficient scale of operation in many industries is quite high relative to market demand. D) Risk spreading.
Which of the following statements is FALSE?
A) Checkable deposits are usually the lowest cost source of bank funds. B) Checkable deposits are the primary source of bank funds. C) Checkable deposits are payable on demand. D) Checkable deposits include NOW accounts.
We know with certainty that a consumer will buy a newly introduced product rather than an existing product when the:
A. MU/P of the new product exceeds the MU/P of the existing product. B. price of the new product is less than the price of the existing product. C. MU of the new product is more than the MU of the existing product. D. law of diminishing marginal utility applies to the existing product.
When the economy is operating at a point where aggregate demand equals long-run aggregate supply, it must be true that:
A. the economy is in long-run equilibrium. B. aggregate demand also equals short-run aggregate supply. C. prices and expected prices are the same. D. All of these are true.