In the Keynesian model in the short run, a decrease in government purchases causes output to ________ and the real interest rate to ________.
A. rise; rise
B. fall; rise
C. fall; fall
D. rise; fall
Answer: C
You might also like to view...
The price at which one currency exchanges for another currency is called the
A) foreign exchange rate. B) value of the dollar. C) currency exchange rate. D) net export exchange rate. E) money exchange rate.
A firm is employing capital and labor such that the marginal product of capital is 30 and the marginal product of labor is 10
If the price of a unit of capital is $50 and the price of a unit of labor is $10, is the firm minimizing its costs? If not, can you recommend a change for the firm to make in its relative amounts of labor and capital used? Explain.
Suppose a Treasury bond will mature in 3 years. If the bond pays a coupon of $100 per year and will make a final par value payment of $3,000 at maturity, what is its price if the relevant market interest rate is 7%?
A) $2,448.89 B) $2,711.33 C) $3,247.57 D) $3,510.00
According to the table shown, what is the firm's marginal cost from producing the 2nd unit?
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.
A. $10.00
B. $7.50
C. $27.50
D. $20.00