________ in the domestic interest rate causes the demand for domestic assets to shift to the left and the domestic currency to ________, everything else held constant
A) An increase; appreciate
B) An increase; depreciate
C) A decrease; appreciate
D) A decrease; depreciate
D
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An increase in the dollar price of the British pound will ________.
A. cause Britain's terms of trade with the United States to deteriorate B. leave the pound price of dollars unchanged C. decrease the pound price of dollars D. increase the pound price of dollars
In the above figure, if the price is $16 per unit, a profit maximizing perfectly competitive firm will
A) shut down. B) incur an economic loss but continue to operate. C) make zero economic profit. D) make an economic profit.
Which of the following will the Federal Reserve do to decrease the money supply?
a. Decrease the salaries of government employees. b. Sell government bonds. c. Buy government bonds. d. Raise taxes. e. Sell corporate bonds.
A competitive price-searcher firm is currently producing 10 units of output. At this level of output the firm is charging a price equal to $10, has marginal revenue equal to $6, has marginal cost equal to $6, and has average total cost equal to $12 . From this information we can conclude that
a. the firm is currently earning zero profit. b. the profits of the firm are negative. c. firms are likely to enter this market in the long run. d. the firm would earn more profit by reducing output.