Forcing a natural monopolist to produce where price, or marginal benefits, equals cost results in an ________ ________ to the monopolist
a. opportunity cost
b. economic loss
c. economic profit
d. normal profit
b
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In the simple Keynesian consumption function, consumption demand is
A) a function of disposable income alone. B) a function of disposable income and an autonomous component. C) simply an autonomous amount exogenous to the model. D) a function of the interest rate and an autonomous component. E) a function of the interest rate alone.
When an economy is operating well below its full-employment capacity and the marginal propensity to consume is 0.75, a $10 billion increase in investment spending will cause the equilibrium output to rise by:
a. $5 billion. b. $10 billion. c. $20 billion. d. $40 billion.
In relation to the corporation, its bondholders are
a. borrowers b. lenders c. customers d. managers e. owners
Which of the following is not a constraint on deposit creation?
A. The reserve requirement increases. B. The interest rate falls, making borrowing less costly for businesses and consumers. C. Banks become less willing to lend money to businesses and consumers. D. Businesses and consumers stop using and accepting checks or debit cards.