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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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
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.