The money market (short-run) equilibrium equation states that the demand for real balances, (L(i)Y) is always equal to the supply of real balances (M/P) because __ adjust(s) to ensure that people are willing to hold the entire stock.

If the dollar price of a good manufactured in the U.S. is $6 and the dollar price of the same good manufactured in India is $8, should retailers of the good in the U.S. purchase the good from Indian suppliers or from American suppliers?

What will be an ideal response?

In order to maximize profits, a firm should decrease output whenever total cost exceeds total revenue

a. True b. False