A monopolist produces an output level where marginal revenue equals marginal cost and charges a price where marginal cost equals average total cost
a. True
b. False
Indicate whether the statement is true or false
False
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When interest rate rise consumers will
A) compare loan payments with the desirability of goods in the future and increase consumption. B) compare loan payments with the desirability of goods today and increase consumption. C) wait to borrow funds when interest rates fall. D) none of above.
One cost of unanticipated inflation is:
A. both lenders and borrowers lose. B. arbitrary redistributions of income. C. nominal income falls below real income. D. people cannot repay their debts.
It is ____ that in international trade, when one country gains, another loses; it is ___ that to assure prosperity for its citizens, a nation should do all it can to promote exports and keep out imports.
A. true; true B. false; false C. false; true D. true; false
An expansionary monetary policy in the United States should
A) cause the dollar to appreciate. B) decrease the foreign currency price of U.S. exports. C) decrease net exports. D) decrease the dollar price of imports.