Contractionary monetary policy causes
A) aggregate demand to rise and the price level to rise.
B) aggregate demand to fall and the price level to fall.
C) aggregate demand to rise and the price level to fall.
D) aggregate demand to fall and the price level to rise.
Answer: B
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For jointly owned substitute products, cannibalization leads to MR______MC
a. Being higher than b. Being lower than c. Equaling d. None of the above
What is the appropriate degree of abstraction?
a. The more detail there is, the better. b. The detail should be minimized in order to avoid all complexity. c. Abstraction is unnecessary, and should be avoided. d. Abstraction is the essence of analysis, and is pursued for its own sake. e. It depends on the objective of the analysis.
Diversification
a. increases the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is higher. b. increases the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is lower. c. reduces the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is higher. d. reduces the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is lower.
Which of the following is not a macroeconomic question?
A. Should we have a constitutional amendment requiring the federal government to balance the budget each year? B. Should restaurants be required to list the number of calories for each product on their menus? C. How does a fiscal stimulus package affect gross domestic product? D. Should Congress enact tougher immigration laws to reduce unemployment?