In the development of the IS curve, one variable that turns from exogenous to endogenous is
A) the interest rate.
B) the price level.
C) consumption.
D) saving.
E) investment.
E
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
If firms in a duopoly can successfully collude
A) each firm can earn an economic profit. B) the industry, that is, both firms taken together, can earn the maximum economic profit. C) the firms achieve a cooperative equilibrium. D) All of the above answers are true.
Which of these is most likely to reduce the potential output of an economy?
a. An increase in the size of the labor force b. A deterioration in the quality of the labor force c. A decrease in the cost of using computers d. A decrease in the price level e. An increase in the price level
Who buys and sells in the Fed funds market?
A. Financial institutions and large corporations B. Anyone with a computer and an Internet connection can participate C. Only commercial banks and depository institutions D. All large financial institutions