The desired level of inventories is the level at which the extra cost (in lost sales) from lowering inventories by a small amount is
A. greater than the extra gain (in interest revenue and decreased storage costs).
B. just equal to the extra gain (in interest revenue and decreased storage costs).
C. zero.
D. less than the extra gain in (in interest revenue and decreased storage costs).
Answer: B
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The total value of production from Ford's manufacturing plant in Cologne, Germany would be included in Germany's gross national product
Indicate whether the statement is true or false
The Marshall-Lerner condition holds that a country's current account balance will ________ in response to a real ________ in a nation's currency if ________
A) improve; depreciation; sum of the price elasticities of export and import demand exceeds 1 B) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 1 C) improve; appreciation; sum of the price elasticities of export and import demand exceeds 1 D) improve; appreciation; sum of the price elasticities of export and import demand exceeds 0 E) worsen; depreciation; sum of the price elasticities of export and import demand exceeds 0
Patent and copyright laws
a. encourage creative activity. b. promote competition among firms. c. discourage creative activity. d. Both a and b are correct.
Refer to the accompanying figure.
An economy is currently in long-run equilibrium at point B, at an inflation rate of ?', which is too high for to sustain economic growth. If an anti-inflationary policy is enacted, the economy will be in short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________.
A. A; B B. B; C C. A; C D. B; A