All else constant, an increase in the demand for bonds
A) increases the equilibrium quantity and the equilibrium price of bonds.
B) increases the equilibrium quantity and decreases the equilibrium price of bonds.
C) decreases the equilibrium quantity and increases the equilibrium price of bonds.
D) decreases the equilibrium quantity and the equilibrium price of bonds.
Ans: A) increases the equilibrium quantity and the equilibrium price of bonds.
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A perfectly competitive firm will maximize profit when the quantity produced is such that the
A) firm's total revenue is equal to total cost. B) firm's marginal revenue is equal to the price. C) firm's marginal revenue is equal to its marginal cost. D) price exceeds the firm's marginal cost by as much as possible. E) firm's marginal revenue exceeds its marginal cost by the maximum amount possible.
Any supplement to consumer spending that increases domestic aggregate output and income is called a leakage
Indicate whether the statement is true or false