To the extent that households are target savers who save to reach a specific goal, an increase in the interest rate ________ household saving and a decrease in the interest rate ________ household saving.
A. increases; decreases
B. does not affect; increases
C. increases; does not affect
D. decreases; increases
Answer: D
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In the short run, a monopolist will shut down when
a. average total cost is greater than price at all output levels b. average variable cost is greater than average fixed cost at all output levels c. price is greater than average variable cost at all output levels d. average fixed cost is greater than price at all output levels e. average variable cost is greater than price at all output levels
In the equation of exchange, velocity will tend to rise when: a. the price level rises, other things being equal
b. real GDP rises, other things being equal. c. the money supply declines, other things being equal. d. all of the above.
Adam is looking for a job in marketing. He has had some offers and his prospects are promising, but he has not yet accepted a job. Amanda lost her job working for Mercury Bicycles because many customers decided they prefer bicycles manufactured by Ultimate Bicycles instead. Who is frictionally unemployed?
a. Adam but not Amanda b. Amanda but not Adam c. both Adam and Amanda d. neither Amanda nor Adam
In an open economy, a reduction in government spending will cause
A) an increase in domestic output. B) an increase in imports. C) an increase in net exports. D) all of the above E) none of the above