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In the Very Short Run, fiRms Tend to Respond to Demand

question 200

True/False

In the very short run, firms tend to respond to demand shocks by changing their prices.


Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to evaluate the profitability of an investment.

Pakistani Rupees

the official currency of Pakistan, symbolized as PKR.

Yankee Bond

A bond issued by a foreign entity in the United States, denominated in U.S. dollars, and subject to American securities laws.

United States

A country located primarily in North America, consisting of 50 states and a federal district.

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