Profitable investment is most effectively promoted when:
a. the money supply and price level are stable.
b. inflation is rising rapidly
c. monetary policy is unanticipated.
d. persistent inflation increases uncertainty.
a
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A competitive employer will hire inputs up to the point where the
A. price of the input equals the marginal product of the input. B. price of the input equals the price of the output. C. price of the input equals the marginal revenue product of the input. D. marginal product of the input reaches a maximum.
The market where businesses sell goods and services to households and the government is called the:
A. goods market. B. money market. C. capital market. D. factor market.
Refer to Figure 35.5. If S1 represents the U.S. domestic supply of a good and S2 represents supply in the United States under conditions of free trade, what does S3 most likely represent?
A. U.S. supply under tariff-restricted trade. B. Production possibilities under conditions of free trade. C. U.S. supply under quota-restricted trade. D. The result of a foreign country dumping this good on the U.S. market.
Which of the following is true in long-run equilibrium for both perfect competition and monopolistic competition?
A. Accounting profit is zero. B. Marginal cost equals price. C. Long-run average cost is at a minimum. D. Economic profit is zero.