Starting from equilibrium in the ISLM framework, an increase in money demand results in
A) a rise in income and the interest rate.
B) a rise in income and a decline in the interest rate.
C) a decline in income and the interest rate.
D) a decline in income and a rise in the interest rate.
D
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A rightward shift of a demand curve is called a(n)
a. increase in demand b. decrease in demand c. increase in quantity demanded d. decrease in quantity demanded e. increase in supply
To bypass capital controls, people who need foreign currency sometimes resort to:
a. forward foreign exchange markets. b. stock markets. c. black markets. d. farmers markets.
If a firm with monopoly pricing power in the market faces a demand curve of P = 2,000 - 2Q and marginal cost of MC = 1,100 + 2Q, then the firm will produce at a price of
A. $1,400. B. $1,600. C. $1,700. D. $16.
What does the law of diminishing returns imply for the shape of the marginal cost curve?
What will be an ideal response?