Figure 14-8



Refer to . There is excess money demand at an interest rate of

a.

2 percent.

b.

3 percent.

c.

4 percent.

d.

None of the above is correct.

a

Economics

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An example of a deficit item on the U.S. balance of payments is

A) the sale of a spark plug made by a U.S. firm in Michigan to a Nissan plant in Tennessee. B) the purchase of Japanese yen by a U.S. firm. C) a deposit in a bank in Chicago by the government of Saudi Arabia. D) the payment of a dividend by a British firm to a U.S. family.

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If a firm sells its product in a monopolistic market, even though the firm operates in a perfectly competitive labor market, the firm will employ workers up to the point where

A) TR = TC. B) the MRP = the wage rate. C) the MRP = the marginal physical product of labor. D) the MRP = the output price.

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