An open market purchase by the Fed:
A. increases investment and increases output.
B. increases investment and decreases output.
C. decreases investment and increases output.
D. decreases investment and decreases output.
Answer: A
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In the short run, a firm should shut down its operation if:
a. its losses are less than TFC at the MR = MC point. b. its losses equal TFC at the MR = MC point. c. its losses are greater than TFC at the MR = MC point. d. TR is less than TC. e. TR exceeds TVC.
Empirical evidence suggests that more digital cameras are being sold today than one year ago, and the selling price has decreased. The probable reason for this could have been an increase in supply
a. True b. False Indicate whether the statement is true or false
If both the marginal social benefit of abatement function and the marginal social benefit of abatement function shifted up. a. The greater would be the efficient level of pollution abatement
b. The smaller would be the efficient level of pollution abatement. c. There would be no change in the efficient level of pollution abatement. d. We do not know whether the efficient level of pollution abatement would rise or fall.
All buyers benefit from a binding price ceiling
a. True b. False Indicate whether the statement is true or false