Vic derives less satisfaction from each additional cup of coffee he drinks. Therefore, he will buy added cups of coffee only if ______.
a. the quantity is increased
b. the price is reduced
c. the quantity is reduced
d. the price is increased
b. the price is reduced
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Demand-side inflation occurs when
A) long-run aggregate demand rises faster than short-run aggregate supply. B) aggregate demand falls more rapidly than aggregate supply. C) increases in aggregate supply outstrip increases in aggregate demand. D) increases in aggregate demand are not matched by increases in aggregate supply.
Explain why international capital markets have expanded since the 1980s
What will be an ideal response?
Assume that product X has a negative cross elasticity with respect to shoes. If the price of shoes rises
A) the demand for product X will decrease. B) the quantity demanded for product X will increase. C) the demand for shoes will fall. D) the demand for product X will increase.
Which of the following statements about trade deficits is FALSE?
A. Budget deficits tend to produce trade deficits. B. The U.S. has run a trade deficit for about 40 years. C. The U.S. trade deficit widened sharply in the1990s. D. A trade deficit makes it less likely that foreigners will make investments in a country.