If a firm can borrow or lend at a 6 percent annual interest rate, it will
a. buy more capital if it has the funds on hand than if it has to borrow them
b. ignore the market rate of interest when making capital investment decisions
c. buy less capital if it has the funds on hand than if it has to borrow them
d. ignore the market rate of interest when making saving decisions
e. buy the same amount of capital whether it has the funds on hand or has to borrow them
E
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Using the table, what is the marginal social cost when the market quantity supplied is 750 slices of pizza per month?
A) $3 B) $7 C) $9 D) $3.50
In the above figure, the equilibrium exchange rate between U.S. dollars and British pounds is
A) A. B) B. C) C. D) W.
If a firm in a perfectly competitive market faces a market price of $8, and it decides to increase its production from 300 units to 550 units, the firm's total revenue will:
A. increase from $2,400 to $4,400. B. decrease from $4,400 to $2,400. C. stay the same at $8. D. likely rise, but it cannot be determined by how much.
The most effective and frequently used tool the Fed has to increase or decrease the economy's money supply is
a. open market operations b. changes in the legal reserve requirement c. changes in the discount rate d. changes in the federal funds rate e. moral suasion