If doubling the quantity of inputs more than doubles the quantity of outputs, the firm is experiencing
a. increasing returns to scale.
b. decreasing returns to scale.
c. constant returns to scale.
d. increasing costs per unit of output.
A
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Monetarists differ from Classical economists in that they argue that
A) changes in the money supply affect only the price level in the long run. B) velocity is not fixed but is predictable. C) the economy tends to be stable around full employment. D) the demand for money is a fixed fraction of nominal GDP.
The interest income earned on most municipal bonds in the United States is tax exempt. Thus, for such municipalities
A) the level of public investment projects is lower than it would be otherwise. B) municipal tax revenues are higher than they would be otherwise. C) the user cost of cost capital is lower than it would be otherwise. D) All of the above are correct.