If a firm is currently in short-run equilibrium earning a profit, what impact will a lump-sum tax have on its production decision?
A) The firm will decrease output to earn a higher profit.
B) The firm will increase output but earn a lower profit.
C) The firm will not change output but earn a lower profit.
D) The firm will not change output and earn a higher profit.
C
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The ongoing search by savers for high returns leads the bond and stock markets to direct funds to the uses that appear:
A. least likely to be productive. B. to have no risk. C. most likely to be productive. D. to have the least risk.
Refer to Table 9-2. In Year 1, if savings deposits had been $200 billion instead of $150 billion, M1 would have been
A) unaffected. B) larger by $50 billion. C) smaller by $50 billion. D) $100 billion.
An increase in the real interest rate on U.S. bonds, everything else equal, will have the following impact on the foreign exchange market:
A. the supply of dollars will increase. B. the dollar will depreciate relative to foreign currencies. C. there will be a movement up the existing demand for dollars curve. D. the demand for dollars will increase.
Use the following table to answer the question below for Country Y. Column 1 is the world price of a product, Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd). Assume the small-country model is applicable.PriceQddQsd$9.002504508.003004007.003503506.00400300Assume the small-country model is applicable. If the world price of the product is $6, then Country Y will
A. import 400 units of the product. B. import 100 units of the product. C. export 100 units of the product. D. export 300 units of the product.