The formula for MC is
A. q/TVC.
B. TVC/q.
C. ?TVC/q.
D. ?TVC/?q.
Answer: D
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If the Fed adopts a policy of pegging the interest rate, a ________ in government spending forces the Fed to increase the money supply to prevent interest rates from ________
A) fall; increasing B) fall; decreasing C) rise; decreasing D) rise; increasing
The BP schedule will be steeper the
a. more responsive capital flows are to the interest rate. b. less responsive capital flows are to the interest rate. c. smaller the marginal propensity to import. d. less likely an expansionary fiscal policy will lead to a balance of payments deficit.
The indifference curves for left shoes and right shoes are right angles
a. True b. False Indicate whether the statement is true or false
The government of a country that is experiencing strong currency appreciation might find itself under pressure from some of its own citizens. Who would be likely to be bringing pressure and why?
What will be an ideal response?