A demand curve will shift out for any of the following reasons except
a. preference for a good increases.
b. price of a substitute falls.
c. income rises.
d. price of a complement falls.
b
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If the coupon payment on a bond is $500 and the coupon rate is 5%, then what is the face value of the bond?
A. $10,667 B. $10,000 C. $1,000 D. $678.40 E. There is not enough information provided to answer this question.
In the aggregate expenditures model, if aggregate expenditures (AE) are greater than GDP, then:
a. inventory is depleted. b. inventory is accumulated. c. inventory is unchanged. d. employment decreases.
Firms that are price searchers
a. will eventually find and charge the highest price at which consumers will purchase any units. b. face inelastic demand curves for their products. c. do not confront rival sellers like price takers do. d. face a downward-sloping demand curve.
Scarcity is a temporary state of insufficiency that ends with new innovation
Indicate whether the statement is true or false