If a firm shuts down in the short run, it will:
A. incur losses equal to its fixed costs.
B. have total revenue greater than total fixed costs.
C. reduce its losses to zero.
D. do this because P > AVC.
Answer: A
Economics
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If a corporate bond with face value of $1,000 has an interest rate of eight percent paid once a year for a term of 30 years, what is the size of the annual coupon payment?
A) $1,000 B) $300 C) $80 D) $8
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Suppose the economy is producing at the natural rate of output. An open market purchase of bonds by the Fed will cause ________ in real GDP in the long run and ________ in inflation in the long run, everything else held constant
A) an increase; an increase B) a decrease; a decrease C) no change; an increase D) no change; a decrease
Economics