Marginal revenue is less than price for
A) all price searchers.
B) all price takers.
C) price searchers who can't restrict price reductions to the new purchases they want to attract.
D) sellers who face inelastic demand curves.
C
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If a central bank does not want to see its currency ________ in value, it may pursue expansionary monetary policy to lower the domestic interest rate, thereby ________ its currency
A) fall; strengthening B) fall; weakening C) rise; strengthening D) rise; weakening
Historical note: Since the end of World War II, the U.S. economy has experienced
a. no recessions b. one recession c. approximately one recession each year d. 100 recessions e. 11 recessions
Refer to the scenario above. If both economies have identical depreciation rate, then:
A) economy A's steady state equilibrium will lie to the left and above economy B's steady state equilibrium. B) economy A's steady state equilibrium will lie to the right and below economy B's steady state equilibrium. C) economy A's steady state equilibrium will lie to the left and below economy B's steady state equilibrium. D) economy A's steady state equilibrium will lie to the right and above economy B's steady state equilibrium.
While many analysts defended the actions taken by the Fed and the Treasury to respond to the financial crisis in 2008, others were critical of these actions. The critics were concerned that by not allowing large firms to fail,
A) stockholders and bondholders of these firms were not allowed to receive the proceeds from the sale of assets that would have occurred if the firms had declared bankruptcy. B) there will be less competition in the U.S. economy, which could led to higher prices for consumers. C) smaller firms will resent not receiving similar assistance. D) there is an increased likelihood that other firms will engage in risky behavior in the future with the expectation that they will also not be allowed to fail.