If the current interest rate increases,
a. the money demand curve shifts downward and the money supply curve remains unchanged.
b. the money demand curve shifts upward and the money supply curve remains unchanged.
c. there is a movement along the money demand curve and the money supply curve increases.
d. there is a movement along the money demand curve and the money supply curve remains unchanged.
D
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Explain why selling output at a price below that at which marginal revenue equals marginal cost (MR = MC) might serve to deter entry of a potential competitor
What will be an ideal response?
Every Friday night Elizabeth either goes bowling or goes to the movies. Because the price of bowling went up, Elizabeth now sees more movies. Elizabeth's behavior would be best described as a change in which determinant of demand?
a. Price of complementary goods b. Expectations c. Income d. Number of buyers e. Price of substitute goods
According to the rule of 72, if you have $15,000 in an account that grows at the rate of 12 percent annually, it will take approximately six years for the $15,000 to double to $30,000
a. True b. False Indicate whether the statement is true or false
According to the equimarginal principle, if the marginal cost of an activity outweighs the marginal benefit, then
a. the activity should not be pursued at all. b. less of the activity should be undertaken. c. the net total benefit received from the activity is negative. d. people should expand their pursuit of the activity.