The economy is at equilibrium at point B. What would expansionary fiscal policy do?
Refer to the figure above.
A. Move the economy from point B towards point A
B. Move the economy from point B towards point C
C. Move the economy from point B downward along AD2
D. Move the economy from point B upward along AD2
A. Move the economy from point B towards point A
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Why may equity finance be preferred to debt finance for developing countries?
A) A fall in domestic income automatically reduces the earnings of foreign shareholders without violating any loan agreement. B) There are laws insuring against any default with equity finance. C) The risk is shared between debtor and creditor with debt finance. D) The tax structure leaves equity finance unconstrained. E) Repayments are unaffected by falls in real income.
Barriers to entry serve to limit the number of firms that operate in a particular market and, as such, reduce the amount of total profit earned in the market
Indicate whether the statement is true or false
If a person's indifference curves can be represented as a straight line, the person views the goods as
a. perfect substitutes b. perfect complements c. complements (but not perfect) d. substitutes (but not perfect)
Which of the following best represents the effects of a decrease in the price of coffee, other things being equal?
a. A leftward shift in the demand curve for coffee. b. A downward movement along the demand curve for coffee. c. A rightward shift in the demand curve for coffee. d. An upward movement along the demand curve for coffee.