At a perfectly competitive firm, all of the following is true of the MRP curve EXCEPT
A) the MRP curve is the derived supply of labor.
B) the MRP curve shifts leftward when labor productivity falls.
C) the MRP curve shifts rightward when the product price rises.
D) the MRP curve shifts leftward when the demand for the final product falls.
A
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In general, it is common for goods with ________ to be auctioned
A) low prices B) relatively few buyers C) a large number of buyers D) a large number of sellers
Though many assets can be used as a store of value, money is a particularly attractive method to store value because:
a. it increases in value as prices rise. b. its purchasing power does not decline when prices rise. c. it is the most liquid of all assets. d. it is backed by gold.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and net nonreserve international borrowing/investing in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises and net nonreserve international borrowing/investing becomes more positive (or less negative). b. The real risk-free interest rate falls and net nonreserve international borrowing/investing becomes more negative (or less positive). c. The real risk-free interest rate rises and net nonreserve international borrowing/investing becomes more negative (or less positive). d. The real risk-free interest rate and net nonreserve international borrowing/investing remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
If M doubled and V fell by 25%, what would happen to PQ?
What will be an ideal response?