If marginal benefits exceed marginal costs, it is profitable to:
A. decrease Q.
B. increase Q.
C. stay at that level of Q.
D. All of the statements associated with this question are correct.
Answer: B
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You are an American resident but have invested in a German bond (paying face value) that matures in two years, pays a 5 percent interest rate and is denominated in euros. What could cause your rate of return to fall below 5 percent even though the bond pays off at maturity?
What will be an ideal response?
Increased production, but not increased inflation, will result in higher:
A. nominal GDP. B. money GDP. C. real GDP. D. current dollar GDP.
The shift from S to S' is called a(n)
A. decrease in quantity supplied.
B. increase in quantity supplied.
C. increase in supply.
D. decrease in supply.
Suppose the overall MPC is 0.75 and the marginal propensity to import is 0.25. A $4 billion increase in U.S. exports will lead to a ________ increase in GDP
A) $6 billion B) $8 billion C) $12 billion D) $16 billion