A rightward shift of the investment demand curve might be caused by:
A. an increase in the price level.
B. a decline in the real interest rate.
C. businesses planning to increase their stock of inventories.
D. an increase in business taxes.
C. businesses planning to increase their stock of inventories.
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Firms that continue to produce when sales are temporarily low in an effort to avoid costly fluctuations in production are engaging in ________
A) second degree price discrimination B) stock out avoidance C) work in progress D) production smoothing
The difference between economic profit and accounting profit is that economic profit is calculated based on both implicit and explicit costs whereas accounting profit is calculated based on explicit costs only
a. True b. False Indicate whether the statement is true or false
If the supply of loanable funds shifts right, then the equilibrium
a. interest rate falls, so domestic residents will want to purchase more foreign assets. b. interest rate falls, so domestic residents will want to purchase fewer foreign assets. c. interest rate rises, so domestic residents will want to purchase more foreign assets. d. interest rate rises, so domestic residents will want to purchase fewer foreign assets.
The employees at Hasket Electronics, Inc all received a significant raise. Afterward, the amount of food bought from the company’s vending machines decreased. Judging from this information, vending machine food would be considered a(n) ______.
a. inferior good b. superior good c. normal good d. abnormal good