In constructing a demand curve for product X:
A. consumer preferences are allowed to vary.
B. the prices of other goods are assumed constant.
C. money incomes are allowed to vary.
D. the supply curve of product X is assumed constant.
Answer: B
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Referring to Table 12.2, if the nominal interest rate is 3.5 percent and there is no inflation, which investments will be undertaken?
A) B, D, E B) D, E C) B, C, D, E D) C, E
When the price level ________, the demand curve for money shifts to the ________ and the interest rate ________, everything else held constant
A) falls; right; rises B) rises; right; falls C) falls; left; rises D) rises; right; rises
If one Mexican peso was worth 0.05 U.S. dollar, then one U.S. dollar would be worth:
a. 20 Mexican pesos. b. 0.05 Mexican pesos. c. 0.05 U.S. dollars. d. 20 U.S. dollars. e. 1 Mexican peso.
Taxes constant
What will be an ideal response?