The supply curve for bonds would be shifted to the left by
A) a decrease in government borrowing.
B) a decrease in the corporate tax on profits.
C) an increase in tax subsidies for investment.
D) an increase in expected inflation.
A
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When should a firm increase its production?
a. When it is earning a positive profit. b. When its revenues are too low to cover the firm's fixed costs. c. When there is a fall in the price of its product. d. When its marginal revenue exceeds its marginal cost.
The price of pens increases from $2 to $2.20. At the same time, the quantity of pens demanded decreases from 100 to 90. Demand for pens is
A) perfectly inelastic. B) inelastic. C) unitary elastic. D) elastic
An increase in the currency drain ratio ________
A) decreases the size of the money multiplier B) increases the size of the money multiplier C) increases the deposits in all banks D) decreases the size of the monetary base E) increases the size of the monetary base
The fact of increasing opportunity costs means that a production possibilities frontier will
A) be a straight line. B) reach a maximum and then gradually decrease. C) bow outward. D) shift outward over time.