If foreign holdings of U.S. dollars decrease, holding all else constant,
A) the balance on the U.S. current account will decrease.
B) the U.S. balance of trade will decrease.
C) the balance on the U.S. financial account will decrease.
D) the balance on the U.S. capital account will decrease.
C
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Suppose a monopolist has zero marginal cost. If he faces a market demand curve with constant price elasticity of -2, the profit maximizing output level approaches infinity.
Answer the following statement true (T) or false (F)
Which of the following is most important for the growth of income and full realization of an economy's potential?
a. a positive rate of time preference that motivates a high rate of current consumption b. low real interest rates c. the use of central planning to allocate investment funds d. a mechanism capable of attracting savings and channeling them into investment projects that create wealth
Which of the following would shift the investment demand curve leftward?
A. an increase in business taxes B. a decrease in business taxes C. a tax credit for new investment D. Firms are operating their plants at full capacity.
Households ________ factors of production and ________ goods and services
A) supply; demand B) supply; supply C) demand; supply D) demand; demand