Firms often seek to borrow money to expand their capital stock, and the price they pay for that money is the interest rate. What happens to quantity of money demanded if the interest rate increases?
a. It increases.
b. It decreases.
c. It does not change.
d. Uncertain-the law of demand does not apply to money.
b
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Fill in the columns in the following table and use the values in the table to determine the profit-maximizing level of output
Quantity Total Revenue (TR) Total Cost (TC) Profit Marginal Revenue (MR) Marginal Cost (MC) 0 0 3 1 5 5 2 10 6 3 15 8 4 20 11 5 25 15 6 30 21 7 35 30 8 40 42 9 45 60 10 50 85
The classical economist holds that interest rates are set by
A. the government. B. banks. C. supply and demand. D. None of the choices are correct.
What are some of the main advantages and disadvantages of the extensive financial and commercial networks linking nations today?
What will be an ideal response?
If a consumer spends all of his or her income and the marginal utility per dollar is equal for all goods, then
A) marginal utility is maximized. B) total utility is maximized. C) a consumer could not be better off even with greater income. D) the proportion of income spent on each good must be equal.