All else constant, an increase in the amount of borrowing by the federal government would reduce the amount of money available for businesses to borrow to finance investment spending
Indicate whether the statement is true or false
TRUE
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Describe the transition from short-run to long-run equilibrium in a monopolistically competitive industry
What will be an ideal response?
A market in which a price-controlled good is sold at an illegally high price is known as
A) a flooring market. B) a ceiling market. C) a black market. D) a supermarket.
In an oligopoly, each firm knows that its profits
a. depend only on how much output it produces. b. depend only on how much output its rival firms produce. c. depend on both how much output it produces and how much output its rival firms produce. d. will be zero in the long run because of free entry.
If a consumer is at an optimum, consuming X and Y, and the price of Y increases, then to get to a new equilibrium the consumer must
A. purchase more of both X and Y. B. purchase more X. C. purchase less X. D. purchase less of both X and Y.