Suppose there is a simultaneous central bank sale of bonds and tax increase. We know with certainty that this combination of policies must cause
A) an increase in the interest rate (i).
B) a reduction in i.
C) an increase in output (Y).
D) a reduction in Y.
D
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Based on the above figure showing a budget line, which of the following combinations of soda and bottled water are not affordable?
A) 3 bottles of water and 4 cans of soda B) 4 bottles of water and 2 cans of soda C) 2 bottles of water and 6 cans of soda D) None of the above, that is, all the combinations listed are affordable.
Growth should
A) be the only strategy. B) be a possible strategy. C) never be a strategy. D) be a strategy only if it minimizes ATC.
Figure 3-14
Refer to . The gasoline market was initially in equilibrium at point e. Other things constant, a decrease in the price of crude oil, an important ingredient used to produce gasoline, would likely move the equilibrium in this market toward point
a.
r.
b.
s.
c.
t.
d.
u.
Rationally, search should continue until:
A. the marginal cost of search is zero. B. all search options have been explored. C. the marginal benefit of search equals the marginal cost of search. D. the marginal benefit of search is zero.