The average percentage markup in the economy
a. is of special interest in microeconomics
b. fluctuates greatly from year to year
c. depends on competitive conditions in the economy
d. depends on the level of GDP
e. increases as the interest rate increases
C
You might also like to view...
The Fed buys $25,000 of government securities. The desired reserve ratio is 20 percent and the currency drain ratio is zero. What will be the change in the quantity of money?
A) $5,000 B) $20,000 C) $25,000 D) $125,000 E) $50,000
Other things constant, when households decide to save more, the supply of credit rises, interest rates ________ and business investment ________
A) rise; rises B) rise; falls C) fall; rises D) fall; falls
If the nation's economy were always on its long-run growth path, then unemployment would be equal to
A) the natural rate of unemployment. B) frictional unemployment. C) cyclical unemployment. D) structural unemployment.
The marginal cost of a vacation in Jamaica is $3,500 . The marginal benefit to Jordan of a vacation in Jamaica is $3,000. a. According to the rule of rational choice, Jordan should choose not to vacation in Jamaica at this time
b. According to the rule of rational choice, Jordan will experience a net gain of $500 if he vacations in Jamaica. c. According to the rule of rational choice, Jordan should borrow $500 and vacation in Jamaica. d. According to the rule of rational choice, Jordan will experience a net gain of $3,000 if he vacations in Jamaica.