In order to practice price discrimination successfully, a monopolist must ensure that there is no resale of the product
a. True
b. False
Indicate whether the statement is true or false
True
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Using the figure above, show the effect on the real interest rate and the quantity of loanable funds of an increase in expected profit
What will be an ideal response?
Higher rates of inflation
a. reduce real marginal tax rates, increasing savings and investment. b. increase real marginal tax rates, reducing savings and investment. c. reduce real marginal tax rates, reducing savings and investment. d. have no effect on real marginal tax rates, and no effect on savings and investment. e. none of the above.
The money that firms raise to finance their activities is called? ________
A. Capital B. Working Capital C. Accruals
Taxes and transfer payments automatically reduce fluctuations in real GDP and thereby stabilize the economy without any need for decisions from Congress or the White House.
Answer the following statement true (T) or false (F)