Refer to Figure 10.5. A shift from MP1 to MP2 will occur if

A) the Fed decreases its target for the short-term nominal interest rate.
B) the term structure effect increases.
C) the default-risk premium decreases.
D) the expected inflation rate increases.

B

Economics

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Refer to Figure 8.2. As the competitive industry, not just the firm in question, moves toward long-run equilibrium, how much profit will the firm earn?

A) $0 B) $306 C) $312 D) $1000. E) $1024

Economics

Like competitive firms, monopolies choose to produce a quantity in which marginal revenue equals marginal cost

a. True b. False Indicate whether the statement is true or false

Economics