Refer to the diagram below of three demand curves for coffee. An increase in the price of coffee, other factors constant, would cause a:
A. Shift from D1 to D3
B. Shift from D1 to D2
C. Movement from point a to point b
D. Movement from point b to point a
Answer: D
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In the long run, the real interest rate is 3 percent, real GDP grows at 4 percent, velocity is constant, and the quantity of money grows at 6 percent. The nominal interest rate is
A) 3 percent. B) 10 percent. C) 5 percent. D) 6 percent. E) 4 percent.
Which of the following decreases the demand for nominal money?
A) a decrease in the nominal interest rate B) an increase in real GDP C) an increase in the quantity of money D) a decrease in the price level
How does the unemployment rate fluctuate over the business cycle?
What will be an ideal response?
Government capital consists of
A) money owned by the government. B) securities owned by the government. C) the buildings owned by the government in Washington, D.C. D) long-lived physical assets owned by the government.