If the price of a typical good rises, the quantity supplied for that good will
A. decrease.
B. automatically increase to infinity.
C. increase.
D. remain the same.
Answer: C
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Which of the following would most likely cause a nation's currency to depreciate?
a. an increase in the nation's domestic inflation rate b. an increase in inflation of the nation's trading partners c. a decrease in the nation's domestic inflation rate d. an increase in domestic real interest rates
If a bank desires to hold no excess reserves, the reserve requirement is 8 percent, and it receives a new deposit of $500,
a. its required reserves increase by $40. b. its total reserves initially increase by $460. c. it will be able to make a new loan of up to $492. d. All of the above are correct.
A specific reduction in government spending will dampen demand-pull inflation by a greater amount the:
A. smaller is the economy's MPC. B. flatter is the economy's aggregate supply curve. C. smaller is the economy's MPS. D. less is the economy's built-in stability.
The rising part of a perfectly competitive firm's marginal cost curve that is equal to or above points on its average variable cost curve is the firm's
A. short run supply curve. B. normal profit curve. C. long run supply curve. D. economic profit curve.