The firm should continue investing
A. only as long as its rental cost is greater than the interest rate.
B. up to the point where the MRPK equals its rental cost.
C. only as long as the MRPK is less than its rental cost.
D. even if the MRPK is equal to its rental cost.
Answer: B
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When the economy's actual price level exceeds the expected price level in the short run: a. the real wages of workers decline
b. the nominal wages of workers increase. c. firms decrease output below the potential level. d. the economy produces the natural rate of output. e. cyclical unemployment in the economy falls to zero.
If the real exchange rate for the dollar is above the equilibrium level, the quantity of dollars supplied in the market for foreign-currency exchange is
a. greater than the quantity demanded and the dollar will appreciate. b. greater than the quantity demanded and the dollar will depreciate. c. less than the quantity demanded and the dollar will appreciate. d. less than the quantity demanded and the dollar will depreciate.
Based on export ratios, which of the following countries is closest to being a closed economy?
A. Belgium. B. Samoa. C. Saudi Arabia. D. China.
The manufacturer of Beanie Baby dolls used quarterly price data for 2005 I - 2013 IV (t = 1, ..., 36) and the regression equationPt = a + bt + c1D1t + c2D2t + c3D3tto forecast doll prices in the year 2014. Pt is the quarterly price of dolls, and D1t, D2t, and D3t are dummy variables for quarters I, II, and III, respectively. 
Using the estimated time-series regression, predicted price in the 2nd quarter of 2014 is
A. $40.40 B. $51.40 C. $54.40 D. $48.40 E. none of the above