If income falls without any change in interest rates, then according to the IS-LM model it may be true that:
a. money demand fell and government spending declined.
b. the money supply increased and taxes declined.
c. tight monetary policy and easy fiscal policy.
d. easy monetary policy and easy fiscal policy.
D
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An increase in the interest rate results in
A) a smaller opportunity cost of investment and so planned investment spending decreases. B) a greater opportunity cost of investment and so planned investment spending increases. C) a greater opportunity cost of investment and so planned investment spending decreases. D) a smaller opportunity cost of investment and so planned investment spending increases.
Refer to the table above. If the rental price of machines is $100 per day, up to how many machines should the firm rent to maximize profits?
A) 4 B) 5 C) 6 D) 7
The band Coldplay's funding of 10,000 mango trees in India to help sop up emissions related to the release of their CD, A Rush of Blood to the Head, is an example of fixed-production technology
a. True b. False
If a 1 percent decrease in the price of one good generates a 3 percent increase in the quantity demanded for another good, then the
a. two goods are complementary b. cross elasticity between the two goods is positive c. two goods are substitutes d. price elasticity of demand for the good whose quantity demanded increased must be inelastic e. price elasticity of demand for the good whose quantity demanded increased must be elastic