In Figure 4-5 above, suppose that real income is YB and the money market is in equilibrium. The interest rate at this point is ________ to support commodity market equilibrium, so that involuntary inventory changes are ________
A) too low, positive
B) too low, negative
C) just right, zero
D) too high, positive
E) too high, negative
B
Economics
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Suppose the economy is at point B. If firms expect profits will be higher in the future, to what point might the economy's move in the short run?
A) It stays at point B. B) It shifts to a point such as A. C) It shifts to a point such as C. D) None of the above answers are correct because it is the SAS curve that shifts, not the AD curve.
Economics
As in the modern world, price-discriminating railroad industrialists of yesteryear charged the highest prices in markets with the steepest competition
Indicate whether the statement is true or false
Economics