A deficit nation in a fixed exchange rate system can improve its balance of payments by increasing

a. its money supply.
b. its interest rates.
c. its level of real GDP.
d. aggregate demand.

b

Economics

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Refer to the two diagrams for individual firms. In Figure 2 the firm's demand and marginal revenue curves are represented by:



A.  lines B and C respectively.
B.  lines A and C respectively.
C.  lines A and B respectively.
D.  line B.

Economics

Which of the following conditions must hold to ensure that profits are, in fact, at a maximum?

A. d(MC(Q))/dQ < 0 B. d(MC(Q))/dQ > 0 and d2?(Q)/dQ2 < 0 C. d(MC(Q))/dQ > 0 D. d2?(Q)/dQ2 < 0

Economics