An increase in the domestic interest rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant

A) increase; appreciate
B) increase; depreciate
C) decrease; appreciate
D) decrease; depreciate

A

Economics

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When price is less than the firms' minimum average total cost, ________

A) new firms will enter the market B) existing firms will leave the market C) prices are likely to fall further D) firms' profits are likely to be maximum

Economics

Activists believe that ________

A) frictions to the self-correcting mechanism of markets prevent prices and wages from being very flexible B) it takes a very long time to reach the long run C) Keynes was right with his statement "in the long-run, we are all dead" D) all of the above E) none of the above

Economics