In an economy with flexible exchange rates, which measure(s) are successful at reducing unemployment in the context of the Three-Sector-Model?
a. Decrease government spending.
b. Increase the discount rate for banks.
c. Lower tax rates.
d. Increase reserve requirements.
e. All of the above
.C
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Value maximization means
A) that managers make decision so as to increase the long-run market value of the financial claims on the firm. B) that a firm should make products that have the highest price. C) that managers make decision so as to increase the short-run market value of the financial claims on the firm. D) all of these choices.
In short-run profit maximization, businesses focus on the ______, holding fixed costs constant.
A. short-term production function B. long-term cost function C. average input cost D. short-term cost function
In this graph, what causes point A to move to point B?
a. a decrease in interest rates in the short run
b. an increase in interest rates in the short run
c. a decrease in interest rates in the long run
d. an increase in interest rates in the long run
Why are cartels are difficult to operate?
a. They work only if members keep to the agreed output and price. b. They are illegal worldwide. c. Firms in a cartel are likely to lose money. d. The products are perfectly competitive.