An increase in interest rates
A) increases the value of the dollar, net exports, and equilibrium output.
B) increases the value of the dollar, reducing net exports and equilibrium output.
C) reduces the value of the dollar, net exports, and equilibrium output.
D) reduces the value of the dollar, increasing net exports and equilibrium output.
B
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What factor changes the quantity of real GDP supplied and results in a movement along the AS curve?
What will be an ideal response?
For a firm to maximize total profits through price discrimination, it should
a. Charge a high price to consumers with an inelastic demand and low price to consumers with an elastic demand b. Charge a low price to consumers with an inelastic demand and high price to consumers with an elastic demand c. Charge the same price to both sets of consumers by maximizing at MR=MC on the elastic demand d. Charge the same price to both sets of consumers by maximizing at MR=MC on the inelastic demand
"The hotter it gets, the more water people drink." This statement implies that the relationship between temperature and water consumption must have: a. no relationship
b. a negative slope. c. a positive slope. d. either positive or negative slope.
The production possibilities curve shifts outward when
A) the law of increasing additional cost takes hold. B) the economy is producing efficiently. C) we produce more consumption goods over productive investment in equipment. D) there is an increase in resources or technology.