With fixed exchange rates and perfect capital mobility, the LM and FE curves are both horizontal.
Answer the following statement true (T) or false (F)
True
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The "underground economy" is also referred to as
A) the informal sector. B) the halfway economy. C) the net domestic product economy. D) the formal sector.
The impact of financial markets on the economy comes partly through
A) the substitution effect. B) the wealth effect. C) the international trade effect. D) the travel effect.
In the short run, the horizontal sum of all of the marginal cost curves (above minimum average variable cost) of individual firms in a competitive market defines the
a. average variable cost curve b. market demand curve c. market supply curve d. average total cost curve e. total quantity demanded
Macy's spent $1 million to set up a customer surveillance system and spends $80,000 a year to maintain it. What would be the AVC and ATC of the system if it watched (a) 100,000 customers a year? (b) 1 million customers a year?
What will be an ideal response?