In the short run, who tends to benefit from a decrease in the exchange rate?
A) domestic producers
B) owners of domestic-currency assets
C) domestic consumers
D) foreign producers
A
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In the Keynesian framework, as long as output is below the equilibrium level, unplanned inventory investment will remain negative, firms will continue to ________ production, and output will continue to ________
A) lower; fall B) lower; rise C) raise; fall D) raise; rise
The dynamic process of competition
a. provides profit-seeking sellers with little incentive to heed consumer preferences. b. was shown by Adam Smith to be a major source of economic inefficiency. c. provides consumers with alternative suppliers and thus a mechanism with which they can discipline sellers. d. will permit business decision makers to earn long-run economic profit unless they are regulated by government officials.