Which of the following would be most likely to cause a reduction in current aggregate demand in the United States?
a. increased fear of a recession
b. an increase in the expected rate of inflation
c. a sharp increase in the value of stocks owned by Americans
d. a rapid increase in the growth of income in Canada, Mexico, and Western Europe
A
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If you have $2 million in a CD at a commercial bank that is a member of the FDIC, how much of your funds are uninsured?
A) $0 B) $1 million C) $1.75 million D) $2 million
If the stores could co-operate, what is the new Nash equilibrium?
a. Megastore $95 and Superstore $80 b. Megastore $305 and Superstore $55 c. Megastore $65 and Superstore $285 d. Megastore $165 and Superstore $115
Which of the following is most likely to lead to demand-side inflation?
A. An increase in government spending B. A decrease in taxes C. An increase in the money supply D. All of these responses are correct.
When a purely competitive market is at its long-run equilibrium, then all of the following are true, except:
A. Price equals marginal cost, and they are equal to the lowest attainable average cost of production B. Marginal benefit of the last unit of the product equals the marginal cost of producing that unit C. Maximum willingness of buyers to pay for the last unit of the product equals the minimum acceptable price for the seller of that unit D. Combined amount of consumer and producer surpluses is at its minimum possible