In the Keynesian model, suppose the Fed sets a target for the real interest rate. If the IS curve shifts up and to the right, and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run, it will
A. not shift the LR curve.
B. shift the LR curve down.
C. shift the IS curve up and to the right.
D. shift the LR curve up.
Answer: D
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Second-degree price discrimination allows firms to do all of the following except which one?
A) sell more units B) earn less profit compared to charging the profit-maximizing price for all units C) receive a higher price of the first units sold D) change some of the consumer surplus into profit
If consumption spending is larger than disposable income,
A. saving is positive. B. dissaving occurs. C. saving is exactly zero. D. a depression results.
The shape of a monopolist's ________ schedule is a curve bowed out from the quantity (horizontal) axis.
A. marginal revenue B. marginal cost C. total revenue D. total cost
When interest rates fall a bank's capital will usually:
A. increase. B. turn negative. C. not change. D. decrease.