In a market where the equilibrium price is $7, any price higher than $7 would cause
a. a balanced demand and supply
b. an excess supply
c. an excess demand
d. none of the above
b
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Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and nominal value of the domestic currency falls. b. There is not enough information to determine what happens to these two macroeconomic variables. c. The real risk-free interest rate rises, and nominal value of the domestic currency falls. d. The real risk-free interest rate rises, and nominal value of the domestic currency rises. e. The real risk-free interest rate rises, and nominal value of the domestic currency remains the same.
The firm has a U-shaped:
The table shows the relationship between total cost and output for a firm.
A. Total cost curve
B. Marginal cost curve
C. Average fixed cost curve
D. Total variable cost curve