Refer to Figure 13-1. Ceteris paribus, a decrease in firms' expectations of the future profitability of investment spending would be represented by a movement from

In the Mundell-Fleming model, regardless of whether the economy has perfect capital mobility or not, an increase in the money supply

a. reduces interest rates . b. increases income. c. decreases the trade balance. d. increases capital inflows.

Diminishing marginal returns explains why a firm’s long-run average total cost curve is U shaped.

Answer the following statement true (T) or false (F)