Average total cost decreases with an increase in output because:
A) the total variable cost decreases with an increase in output.
B) the average fixed cost decreases with an increase in output.
C) the marginal cost of production increases with an increase in output.
D) diminishing marginal returns sets in after a particular level of production.
B
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A higher interest rate makes _____ less attractive. Therefore the quantity of loanable funds demanded decreases
Fill in the blank(s) with correct word
In the long run the real interest rate is determined by ________, and in the short-run the Federal Reserve can control the real interest rate by setting the nominal interest rate if inflation adjusts ________.
A. the Federal Reserve; slowly B. the Federal Reserve; to equal the increase in the money supply C. saving and investment; slowly D. saving and investment; quickly
The "acceptable deaths" notion suggests that it is better to have the benefits of a good to the buyer and seller with a specified number of deaths,
A. than to prohibit the good's production and use entirely. B. in no circumstance. C. than to let the good be produced outside the US. D. but only if the deaths are of less desirable people.
If households and businesses correctly anticipate the inflation rate, the unemployment rate
A. will be the cyclical rate of unemployment. B. will be inversely related to the expected inflation rate. C. will be the natural rate of unemployment. D. will be positively related to the expected inflation rate.