The increase in the federal deficit due to the 2009 stimulus package may have had a smaller impact on the economy due to forward-looking households and firms
A) reducing consumption and investment expenditures in anticipation of future tax increases.
B) purchasing more treasury securities to finance the stimulus package and purchasing fewer goods and services.
C) taking advantage of the strong U.S. dollar to purchase more imported goods.
D) waiting for the real interest rate to fall before borrowing to make long-term investments.
A
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The marginal revenue product of a resource:
a. is defined as the marginal product of the resource multiplied by the resource price. b. simply means that a firm should add to its capital stock as long as competition requires it. c. equals the extra output produced by an additional unit of the resource multiplied by the price of that output. d. equals the average product of the resource multiplied by the cost of hiring an additional (marginal) unit of the resource.
Explain the functioning and significance of vertical agreements. Use specific examples from the apparel and textile markets