The large trade deficits in the U.S. during the 1990's were primarily associated with a rise in domestic investment spending rather than a rise in the budget deficit
a. True
b. False
Indicate whether the statement is true or false
True
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Why do perfectly competitive firms maximize their profits by producing so that the price is equal to marginal cost, but monopolists maximize their profits by setting a price that is greater than marginal cost?
What will be an ideal response?
A mezzanine fund
A) will never buy equity in a company. B) may buy only equity in a company. C) may buy a combination of equity and convertible debt in a company. D) may buy a combination of equity and straight debt in a company.
How does money velocity contribute to the observation that in countries with high rates of inflation the inflation rate exceeds the rate of money growth?
What will be an ideal response?
In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to
A. shift long-run aggregate supply to the left. B. shift aggregate demand to the right. C. shift short-run aggregate supply to the left. D. shift short-run aggregate supply to the right. E. shift aggregate demand to the left.