As someone's income rises, eventually their
A. income effect will outweigh their substitution effect.
B. substitution effect will outweigh their income effect.
C. their substitution and income effects will attain permanent equality.
A. income effect will outweigh their substitution effect.
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The impact of crowding out
A) is larger in an open economy as compared to a closed economy. B) is larger in a closed economy as compared to an open economy. C) is larger in an open economy as compared to a closed economy when fiscal policy is contractionary. D) is larger in a closed economy as compared to an open economy when fiscal policy is contractionary.
Rent is the payment received by resource owners for the use of their natural resources
a. True b. False
Banks want to minimize their holdings of excess reserves because: a. they will be penalized by the Federal Reserve System if excess reserves are too high
b. required reserves are also minimized when banks minimize their holdings of excess reserves. c. the money multiplier becomes too large if the excess reserves are high. d. they want to borrow more on the federal funds market. e. excess reserves earn no interest.
This table represents the revenues faced by a monopolist. PriceQuantity SoldTotal RevenueAverage RevenueMarginal Revenue$1,0001$1,000 $9002$1,800 $8003$2,400 $7004$2,800 $6005$3,000 $5006$3,000 $4007$2,800 Using the information in the table shown, the marginal revenue of the 6th unit is:
A. $0 B. $500. C. -$200 D. $3,000.