Monetary policy is most effective at home when exchange rates are flexible
Indicate whether the statement is true or false
TRUE
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Private businesses tend to spend too little on research and development, because ________
A) investments to increase the capital stock are a better way to boost productivity B) governments tend to spend too much on research and development C) patent laws make it difficult to reap the benefits of such spending D) technology is often nonexcludable
According to the law of diminishing returns
A) the total product of an input will eventually be negative. B) the total product of an input will eventually decline. C) the marginal product of an input will eventually be negative. D) the marginal product of an input will eventually decline. E) none of the above
The price elasticity of demand along a linear demand curve is
A) more elastic at higher prices than at low prices. B) infinite. C) one. D) constant.
Elvis values the first gravy sandwich at $5, the second at $4.50, the third at $4 . If he buys three for $4 each, his consumer surplus is
a. $5 b. $4 c. $1.50 d. $9.50 e. $12