In a perfectly competitive capital market, when the firm's marginal revenue product of capital exceeds the market interest rate, the
a. firm is maximizing profit
b. firm should increase its quantity demanded of loanable funds
c. firm should decrease its quantity demanded of loanable funds
d. capital market is in equilibrium
e. firm should reduce the rate of interest
B
Economics
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If an indifference map for a consumer is made up of straight, negatively sloped lines, the goods are
A) perfect complements. B) unrelated. C) perfect substitutes. D) not desirable.
Economics
Which of the following never assumes, either implicitly or explicitly, independence between nominal and real variables?
A) the AS curve B) the Phillips curve C) Okun's law D) the classical dichotomy E) none of the above
Economics