The short run sequence of events following an unanticipated shift to a more expansionary monetary policy would be lower interest rates followed by dollar
a. depreciation, and an increase in the current account deficit.
b. depreciation, and a decrease in the current account deficit.
c. appreciation, and an increase in the current account deficit.
d. appreciation, and a decrease in the current account deficit.
B
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The socially efficient level of output is determined where:
a. marginal social cost equals marginal social benefit. b. marginal private cost equals marginal social benefit. c. average social cost equals average social benefit. d. average private cost equals average social benefit.
The minimum points of the average variable cost and average total cost curves occur where
a. the marginal cost curve lies below the average variable cost and average total cost curves b. the marginal cost curve intersects those curves c. wages are the lowest d. the slope of total cost is the smallest e. the elasticity of demand is unitary