A decrease in the money supply
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP
b. lowers the interest rate, causing a decrease in investment and an increase in GDP
c. raises the interest rate, causing an increase in investment and a decrease in GDP
d. raises the interest rate, causing an increase in investment and an increase in GDP
e. raises the interest rate, causing a decrease in investment and a decrease in GDP
E
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Which of the following best describes marginal cost?
a. The change in total cost when one additional unit of output is produced. b. Total cost divided by the quantity of output produced. c. Total variable cost divided by the quantity of output produced. d. Total fixed cost divided by the quantity of output produced. e. Costs that do not vary as output varies, and that must be paid even if output is zero.
Which of the following is correct if the interest rate is 6 percent?
a. $215 to be received a year from today has a present value of over $200; $420 a year from now has a present value over $400. b. $215 to be received a year from today has a present value of over $200; $420 a year from now has a present value under $400. c. $215 to be received a year from today has a present value of under $200; $420 a year from now has a present value over $400. d. $215 to be received a year from today has a present value of under $200; $420 a year from now has a present value under $400.
In order to prosper, entrepreneurs in a market economy must
What will be an ideal response?
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.