When an expansionary monetary policy leads to an acceleration in the rate of inflation, it will also result in
a. lower nominal interest rates.
b. higher nominal interest rates.
c. an appreciation of the dollar in the foreign exchange market.
d. lower money wages.
B
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The price elasticity of demand for a rental home in Luxury Resorts in the summer is 1.40 and is 2.60 in the spring. If Luxury Resorts faces a constant marginal cost of $600 per home rental, what is the profit-maximizing peak-load price to charge in the summer?
A) $2,750 B) $2,100 C) $975 D) $1,250
A change that decreases the expected profit from holding a unit of product in inventory, ________ the expected marginal revenue curve and ________ the profit-maximizing quantity to hold in inventory.
A) decreases; increases B) increases; decreases C) decreases; decreases D) increases; increases
As an individual consumes more of a given good or service, the marginal utility of that good to the consumer likely: a. increases
b. remains constant. c. falls. d. falls and then rises.
Microeconomics: a. provides an overall view of the economy and how it functions
b. explores the behavior of individual consumers and firms when confronted with scarcity. c. examines the aggregate behavior of consumers and firms when confronted with scarcity. d. is a "positive" science, whereas macroeconomics is a "normative" science.