An increase in the budget deficit causes domestic interest rates
a. and net capital outflow to rise.
b. to rise and net capital outflow to fall.
c. to fall and net capital outflow to rise.
d. and net capital outflow to fall.
b
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Expansionary monetary policy will
a. often raise real interest rates in the short run. b. generally reduce aggregate demand in the short run. c. lead to higher nominal interest rates if the expansionary policy persists over a lengthy time period. d. lead to a rapid growth of real GDP if the expansionary policy persists over a lengthy time period.
In the following graph, the price of labor is $15 per unit. How many units of labor should a firm use to produce 2,000 units of output at the least cost?
A. 80 B. 100 C. 40 D. 50 E. none of the above
A firm will continue to operate in the long run as long as price exceeds long-run average variable cost.
Answer the following statement true (T) or false (F)
The Federal Deposit Insurance Corporation (FDIC) guarantees that depositors will receive reimbursement for up to ______________ of their money that is deposited in each account even if the bank fails.
a. $250,000 b. $100,000 c. $50,000 d. $500,000