During business cycle expansions when income and wealth are rising, the demand for bonds ________ and the demand curve shifts to the ________, everything else held constant
A) falls; right
B) falls; left
C) rises; right
D) rises; left
C
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Ray's Radios believed the synergies between radio production and battery production could be realized if he expanded. However, due to overseeing the battery expansion Ray devoted less time to the radio business leading to the radio unit costs increasing. Ray's Radios is experiencing
a. Economies of scale b. Economies of scope c. Diseconomies of scale d. Diseconomies of scope
In the open-economy macroeconomic model, other things the same, which of the following both make the exchange rate fall?
a. U.S. investment demand falls and foreign demand for U.S. goods falls b. U.S. investment demand falls and foreign demand for U.S. goods rises c. U.S. investment demand rises and foreign demand for U.S. goods falls d. U.S. investment demand rises and foreign demand for U.S. goods rises