The aggregate supply curve slopes upward because firms
a. seek to maximize profits and output.
b. normally can purchase inputs at fixed prices.
c. employ technology, which is always fixed.
d. purchase inputs whose prices rise as output rises.
b
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In a large open economy, an increase in ________ leads to ________
A) desired saving; an increase in the domestic interest rate B) desired investment; an decrease in the domestic interest rate C) desired saving; an increase in desired investment D) desired saving; a decrease in actual investment E) none of the above
Discuss the time inconsistency problem and explain how it relates to monetary policy
What will be an ideal response?
Suppose a new cost-saving device will forever generate $1,000 net savings per year to a firm. The device costs $10,000. Using the Internal Rate of Return approach, will the firm make the investment?
A) definitely B) definitely not C) if the interest rate exceeds 10% D) if the interest rate is less than 10%
A person using a discount rate, or 0%, is going to consider the concept of sustainability
A. just a fancy term oil and gas companies use to argue for increased rights to drill. B. as wise. C. as unwisely focusing on the present. D. as overly weighting the future.