A temporary negative supply shock ________ real interest rates and ________ output in the short run, thereby its effect on stock prices is ________
A) raises; lowers; negative
B) raises; raises; ambiguous
C) lowers; raises; negative
D) lowers; raises; positive
A
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U.S. firms can produce and sell electric fans for $25. The United States can also import electric fans from China at $40 each and from Canada at $45 each. Electric fans made in the United States, China, and Canada are identical. Currently, the United States imposes a 30% tariff on imported electric fans. From which of the following countries will the United States import fans?
a. China b. Canada c. It will import fans from neither China nor Canada. d. It will import fans from both China and Canada.
A monopolist will spend resources to advertise its product so long as
A) net profits increase. B) gross profits increase. C) demand increases. D) total revenue increases.