When total revenue minus total cost is equal to zero, the firm is:
a. earning above-average economic profit.
b. earning a normal profit.
c. losing too much money to stay in business.
d. earning abnormally low profits.
b
Economics
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This Application refers to quantitative easing, a policy that occurs when the Fed
A) changes the reserve requirement. B) purchases long-term securities. C) raises the discount rate. D) sells mortgage-backed securities.
Economics
If there is no Ricardo-Barro effect, an increase in the government budget surplus
A) increases the supply of loanable funds. B) decreases private saving. C) increases private saving. D) decreases the supply of loanable funds. E) has no effect on the demand for loanable funds, the supply of loanable funds, or the real interest rate.
Economics