In the four-part diagram used to construct the IS curve, a decrease in the interest rate causes
A) an increase in Ap and induced saving but does not shift the IS curve.
B) an increase in Ap and induced saving and shifts the IS curve to the right.
C) a decrease in Ap, an increase in induced saving, and shifts the IS curve to the right.
D) a decrease in Ap and a decrease in induced saving, but does not shift the IS curve.
A
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The goal of the perfectly competitive firm is to
A) maximize total revenue. B) maximize total profits. C) minimize AFC. D) minimize ATC.
Natural monopolies result from the peculiar relationship between
a. government regulation and the ownership of scarce resources b. threats to potential entrants and the price of the product c. the size of market demand and the firm's cost structure d. product differentiation and the ownership of patents e. the firm's advertising campaigns and its labor policies
Refer to the accompanying graph. If this firm is a price taker, then when the price of each unit if output is $15, what is this firm's profit-maximizing level of output? 
A. 60 B. 45 C. 80 D. 0
A financial crisis may develop into a vicious cycle due to:
a. a recession that worsens banking problems. b. increased net capital inflows due to the crisis. c. exchange rate depreciation that increases output. d. banks becoming more liberal in granting loans.