Author Question: If a cut in prices increases total revenue in the short run, what will it do to total revenue in the ... (Read 58 times)

nummyann · **on:** Jun 30, 2018

If a cut in prices increases total revenue in the short run, what will it do to total revenue in the long run?
a. It will decrease total revenue in the long run.
b. It will increase total revenue in the long run.
c. It will leave total revenue unchanged in the long run.
d. Any of the above results are possible in the long run.

Question 2

Which of the following would the Fed increase in order increase the supply of money?
a. open market purchases of government bonds
b. reserve requirements
c. discount rate
d. all of the above