Ceteris paribus, if North Korea increases the size of its military, then:
A.) Its production possibilities curve will shift outward.
B.) Its production possibilities curve will shift inward.
C.) Its production of consumer goods will increase.
D.) Its production of consumer goods will decrease.
D.) Its production of consumer goods will decrease.
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Investment spending is procyclical. In the short run, are changes in investment affected more by changes in the expected marginal product of capital, or by changes in the user cost of capital?
What will be an ideal response?
The IS curve shifts to the right where there is
A) an increase in current taxes. B) a reduction in expected future taxes. C) a reduction in expected future output. D) all of the above E) none of the above
Groups of nations that grants members trade privileges are called
A. trade settlements. B. allies. C. regional trade blocs. D. local trade protectionists.
Suppose a monopolist offers a $20 mail-in rebate on an item with a list price of $100. In order for the rebate to be a perfect hurdle, it must be the case that:
A. buyers use the rebate if and only if they have a reservation price between $80 and $100. B. buyers use the rebate if and only if their cost of filling out the rebate is less than $20. C. all buyers with a reservation price greater than $80 use the rebate. D. some buyers with a reservation price greater than $80 use the rebate.