Which of the following could be a direct cause of investment spending decreasing?
A. A firms revenues increases while their costs remain constant.
B. Real income increases.
C. Real interest rates increase.
D. Expected future income increases.
Answer: C
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The main input into the production of Starbuck’s coffee is imported coffee beans. If the dollar depreciates, how will this affect the U.S. retail coffee market?
A. Input prices will fall and supply will decrease. B. Input prices will fall and supply will increase. C. Input prices will rise and supply will decrease. D. Input prices will rise and supply will increase.
If the supply of bottled water decreases and at the same time the demand for bottled water increases, the equilibrium price ________ and the equilibrium quantity ________
A) might rise, fall, or stay the same; decreases B) might rise, fall, or stay the same; increases C) falls; increases D) rises; might increase, decrease, or stay the same
Laissez-faire proponents contend that the government can serve a valuable role in encouraging firms to engage in research and development by creating a patent system
Indicate whether the statement is true or false
Contestable markets improve the performance of imperfect markets with
A. government regulations. B. the threat of entry. C. advertising. D. tacit collusion.