If interest rates in Europe fall below interest rates in the United States, then, other things equal, the demand for euros will decrease
a. True
b. False
Indicate whether the statement is true or false
True
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If a firm shuts down, it
A) makes zero economic profit. B) incurs an economic loss equal to its total variable cost. C) incurs an economic loss equal to its total fixed cost. D) makes a normal profit. E) might make an economic profit, zero economic profit, or incur an economic loss.
An increase in spending that results from expansionary ________ policy causes the interest rate to ________, everything else held constant
A) fiscal; rise B) fiscal; fall C) incomes; rise D) incomes; fall
A producer is hiring 20 units of labor and 6 units of capital (bundle A). The price of labor is $10, the price of capital is $2, and at A, the marginal products of labor and capital are both equal to 20. Beginning at A, if the producer increases labor by one unit and decreases capital by 1 unit, then
A. output remains constant and cost increases by $8. B. cost remains constant and output increases by 20 units. C. cost remains constant and output decreases by 20 units. D. output remains constant and cost decreases by $8. E. both cost and output remain constant.
TRK, Inc replaces its outdated assembly line with latest robot technology. Which of the following most likely caused this to happen?
a. The money supply decreased. b. Interest rates dropped. c. The return to saving increased. d. The cost of borrowing increased.