Figure 36-6
?
In Figure 36-6, an expansive fiscal policy in a closed economy results in an equilibrium at point E. In an open economy, allowing for the effects of the induced change in the currency value, the final equilibrium would be point
A. B.
B. F.
C. J.
D. H.
Answer: C
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Frank Murphy is considering how many snowmobiles to purchase for his snowmobile rental business. Below are his estimates of the number of snowmobile rentals per year, depending on the number of snowmobiles available.Number ofSnowmobilesYearlyrentals1902170324043005350After paying all non-interest expenses, expenses Frank expects to net $10 per rental. Each snowmobile costs $15,000. How many snowmobiles should Frank purchase if the real interest rate is 4.5%?
A. 4. B. 0. C. 2. D. 1.
The purchase of Michelin Tire Company by General Motors is an example of a vertical merger
a. True b. False Indicate whether the statement is true or false
If a market is narrowly defined, the market share of each firm declines than if it is broadly defined
a. True b. False Indicate whether the statement is true or false
A consumer consumes two normal goods, coffee and chocolate. The price of coffee rises. The income effect, by itself, suggests that the consumer will consume
a. more coffee and more chocolate. b. less coffee and less chocolate. c. more coffee and less chocolate. d. less coffee and more chocolate.