If there's an increase in the future marginal product of capital in a large open economy, it causes the current account to ________ and saving to ________.
A. rise; rise
B. fall; remain unchanged
C. fall; rise
D. rise; remain unchanged
Answer: C
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Use the following graph for a monopolistically competitive firm to answer the next question.
Point b indicates
A. the price-output combination that yields maximum profits. B. the lowest possible cost of the firm's product. C. a situation where the firm is earning economic profits. D. a point that cannot be the long-run equilibrium point.
When the Fed buys a U.S. bond in the open market
A) its action contracts total reserves and the money supply. B) total reserves increase by the amount of the purchase but the money supply stays the same. C) its action expands total reserves and the money supply. D) its action has no effect on the total reserves or the money supply because the check it writes increases reserves at one bank but they fall at another.
The world is more likely to run out of gold than it is to run out of bald eagles
Indicate whether the statement is true or false
The following equations represent the demand and supply for bird feeders
QD = 35 - P QS = -5 + 3P What is the equilibrium price (P) and quantity (Q - in thousands) of bird feeders? A) P = $5; Q = 30 thousand B) P = $35; Q = 20 thousand C) P = $20; Q = 20 thousand D) P = $10; Q = 25 thousand