Real investment spending is ____ real personal consumption
a. equal to
b. greater than
c. stable compared to
d. highly volatile compared to
d
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Which of the following investments offers fixed dividend payments?
A) Consols B) Zero-coupon bonds C) Preferred stock D) Convertible stock
Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at 20ยข per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p
If the long-run supply curve is horizontal, then how many firms will this industry sustain in the long run? A) 0 B) 100 C) 50,000 D) There is not enough information to answer.
Movements along a money demand curve reflect the effects of changes in the: a. price level on the quantity of money demanded
b. interest rate on the demand for money. c. real exchange rate on the demand for money. d. interest rate on the quantity of money demanded. e. potential GDP on the quantity of money demanded.
In the long run, the price charged by the monopolistically competitive firm attempting to maximize profits:
A. must be less than ATC. B. must be more than ATC. C. may be either equal to ATC, less than ATC, or more than ATC. D. will be equal to ATC.