If the real interest rate in the United States decreases, foreign investors will ________ their demand for U.S. dollars because they desire to ________ fewer U.S. financial assets
A) increase; buy
B) increase; sell
C) decrease; buy
D) decrease; sell
C
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Which of the following is likely to happen if the annualized growth rate of money supply increases while real GDP remains unchanged?
A) The unemployment rate will rise. B) The nominal GDP will fall. C) The inflation rate will fall. D) The inflation rate will rise.
Goods that are rival in consumption and excludable are:
A. a common resource. B. a private good. C. a public good. D. an artificially scarce good.
Managers at Concord Construction have determined that the firm’s revenues do not cover the firm’s average variable costs. Which term describes the situation at Concord Construction?
a. The shutdown point b. Allocative inefficiency c. Diseconomies of scale d. The price taking point
If an idea has not been implemented because a monopoly producer has placed a barrier to entry, the circumstances are not normal due to:
A. intervention. B. innovation. C. market failure. D. goals other than profit.