Refer to Figure 13-14. Which of the following statements describes the firm depicted in the diagram?
A) The firm is making no economic profit and will exit the industry.
B) The firm is in long-run equilibrium and is breaking even.
C) The firm is suffering an economic loss by producing at Q0 but will break even if it increases its output to Q1.
D) The firm achieves productive efficiency by producing at Q0.
B
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As a result of the global financial crisis in 2008, _____
a. U.S. interest rates fell and the cost of servicing U.S. debt decreased b. U.S. citizens increased their purchase of foreign securities c. U.S. chronic deficits increased and debt service costs overwhelmed the budget d. debt issued by U.S. government entities was judged to be the safest in the world e. there was downgrading of the nation's credit risk by the chief credit-rating agency in 2011
Explain how a decrease in the interest rate will affect autonomous investment