Firms in monopolistic competition maximize their profit by setting their price equal to their marginal revenue
Indicate whether the statement is true or false
FALSE
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In order to protect against foreign exchange risk, firms can use
A) the spot market for foreign exchange. B) interest rate arbitrage. C) purchasing power parity. D) the forward market for foreign exchange. E) the J-curve.
What was the decline in the value of mutual funds held by households during the depths of the financial crisis, between the third quarter of 2008 and the first quarter of 2009
A) $2 million B) $2 billion C) $200 billion D) $2 trillion
Refer to the above figure. If the aggregate demand curve shifts beyond AD5, which of the following would we NOT expect?
A) strong demand-pull inflation B) no increase in real Gross Domestic Product (GDP) C) strong and rapid increases in the price level D) increases in real net domestic product
Karl has a home business that consists of only himself and his computer. If he were to analyze his operations in the form of a long run production function his isoquants would
A. be straight lines with a negative slope. B. be concave from above. C. be L shaped. D. be straight lines with a positive slope.