Which of the following statements best describes the economic short run?
A) It is a period during which at least one of the firm's inputs is fixed.
B) It is a period during which fixed inputs become variable inputs because of depreciation.
C) It is a period during which firms are free to vary all of their inputs.
D) It is a period of one year or less.
A
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If the real interest rate falls, there is
A) a leftward shift of the supply of loanable funds curve and no shift in the demand for loanable funds curve. B) an upward movement along the supply of loanable funds curve. C) a downward movement along the supply of loanable funds curve. D) a rightward shift of the supply curve of loanable funds and no shift in the demand for loanable funds curve. E) a leftward shift of the supply of loanable funds curve and a rightward shift in the demand for loanable funds curve.
Suppose the market for dollars is in equilibrium, then the expected future exchange rate rises. What effect does this change have on the current exchange rate?
A) It will rise. B) It will fall. C) It will remain unchanged. D) Because both the supply and demand curves shift, the effect on the exchange rate is unpredictable.