If the quantity of credit demanded in a market exceeds the quantity of credit supplied in the market:
A) the real rate of interest tends to rise. B) the unemployment rate tends to fall.
C) the rate of inflation tends to rise. D) the real rate of interest tends to fall.
A
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The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
One of the primary determinants of planned real investment spending is the
A) rate of real government spending. B) rate of real saving. C) expectation of future profits. D) rate of real consumption spending.
Which statement is FALSE considering both advantages and disadvantages of corporations as a legal business organization?
A. Corporations usually are not as well positioned as proprietorships and partnerships to raise large sums of financial capital. B. Perhaps the greatest advantage of corporations is that their owners (the shareholders) enjoy limited liability-limited to the value of their shares. C. Separation of ownership and control is a disadvantage of the corporate structure; owners and managers may have different incentives. D. Legally the corporation continues to exist even if one or more owners cease to be owners.
Marginal revenue product is
A) marginal physical product multiplied by marginal revenue. B) marginal physical product multiplied by average variable cost of the product. C) the price of the product. D) the total revenue from the sale of the product sales.