By restricting foreign lending, a country with sufficient market power can
A. increase world production.
B. lower world interest rates.
C. bid up the rate that foreign borrowers have to pay.
D. bid up the rate that domestic lenders get after taxes.
Answer: C
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If the firms in a market have constant returns to scale internally while there are external economies of scale for the industry, a firm's long-run supply curve will be ________ and the long-run market supply curve will be ________
A) downward sloping; downward sloping B) upward sloping; horizontal C) horizontal; downward sloping D) downward sloping; horizontal E) upward sloping; downward sloping
In the long run a perfectly competitive firm operates ____ and a monopolistically competitive firm operates ____
a. at the efficient scale; with excess capacity b. at the efficient scale; at the efficient scale c. with excess capacity; with excess capacity d. with excess capacity; at the efficient scale
The major protection against sudden mass attempt to withdraw cash from banks is the:
A. Federal Reserve. B. Consumer Protection Act. C. deposit insurance provided by the FDIC. D. gold and silver backing the dollar.
Which of the following short-run outcomes for monopolistic competition is NOT possible?
A. P > ATC. B. P = MR = MC. C. P > MC > ATC. D. P = ATC.