In response to an unanticipated easing of monetary policy, output ________ at first, then ________ after about four months
A) rises; returns most of the way to its original value
B) falls; returns most of the way to its original value
C) remains roughly unchanged; rises significantly
D) remains roughly unchanged; falls significantly
C
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In which of the following situations would consideration of the minimum efficient scale of operation suggest that the market should be served by a single firm to minimize production costs?
A) When the LRAC curve slopes downward over the relevant range of output. B) When the LRAC curve hits its minimum point at a relatively low level of output and then increases and the demand for output is quite large. C) When the LRAC curve hits its minimum point at a relatively low level of output but then remains constant as the scale of operation is increased and the demand for output is quite large. D) When the LRAC curve initially increases and then decreases beyond some point.
An arbitrageur in foreign exchange is a person who
a. buys foreign currency, hoping to profit by selling it at a higher exchange rate at some later date b. earns illegal profit by manipulating foreign exchange c. causes differences in exchange rates in different geographic markets d. simultaneously buys large amounts of a currency in one market and sells it in another market e. mediates disputes when there is no agreement on exchange rates in international currency markets
Demand curves slope downward to the right
a. True b. False Indicate whether the statement is true or false
When risks are shared across many different assets or people, reducing the impact of any particular risk on any one individual, it is called:
A. diversification. B. risk analysis. C. risk aversion. D. risk pooling.