In the simplest Keynesian model of the determination of income, interest rates are assumed
A) to be exogenous and to influence desired spending.
B) to be endogenous and not to influence desired spending.
C) to be endogenous and to influence desired spending.
D) to be exogenous and not to influence spending.
A
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A firm produces output according to the production function, q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. What is the minimum cost of producing 1140 units of output?
A) Cost = $780. B) Cost = $694 C) Cost = $2,071. D) Not enough information is given to answer this problem.
For foreigners, the intersection of the demand for US dollars and the supply of US dollar is known as the
a. Inflation rate b. Exchange rate c. Price d. Quantity
Someone who committed the association-is-causation fallacy might conclude that
a. event B, which follows event A, was caused by the event A b. event B, which follows event A, was not necessarily caused by event A c. the simplest model is the best predictor d. what is true for the individual is also true for the group e. what is true for the individual is not necessarily true for the group
In an open economy, the real level of U.S. exports and the quantity of RGDP demanded ______ the price level
a. Move in the same direction as b. Move in the opposite direction from c. Are not affected by d. Have an indeterminate relationship with