A liquidity trap can occur whenever there is a sharp reduction in the demand for loanable funds in an economy
a. True
b. False
Indicate whether the statement is true or false
True
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The value of resources devoted to rent seeking will
A) at most equal the monopoly's economic profit. B) reduce deadweight loss. C) reduce consumer surplus. D) raise output to an efficient level.
Other things being equal, the effect of a decrease in the price of DVDs on the market for DVD players is a(n):
a. leftward shift in the demand curve for DVD players. b. upward movement along the demand curve for DVD players. c. rightward shift in the demand curve for DVD players. d. downward movement along the demand curve for DVD players.
The dollar return on a foreign investment is less than the interest rate on the foreign asset, if the foreign currency depreciates against the U.S. dollar between the purchase date and the maturity date
a. True b. False Indicate whether the statement is true or false
The cable and subscription TV business is plagued with the problem of "signal theft." People use illegal receivers to capture the company's signal without paying. Enforcement of the company's property right is very expensive. This problem emerges because TV signals are basically
a. economic goods. b. invisible goods. c. depletable goods. d. public goods.