A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n)
A. decrease in the price and quantity of new homes.
B. decrease in the price of new homes and increase in quantity.
C. increase in the price and quantity of new homes.
D. increase in the price of new homes and decrease in quantity.
Answer: D
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A black market may arise when government imposes a price ceiling
a. True b. False Indicate whether the statement is true or false
In the figure above, the relationship between the x variable and the y variable
A) is positive.
B) is negative.
C) starts by being positive and then becomes negative.
D) starts by being negative and then becomes positive.
Which of the following is an advantage of the European Monetary Union?
A. Increased cost of exchanging currencies B. A higher likelihood of conflict between members C. Increased monetary independence for each member D. Increased price transparency
Based on our understanding of the IS-LM model that takes into account dynamics, we know that an increase in government spending will cause
A) a gradual increase in i and gradual increase in Y. B) an immediate increase in Y and immediate drop in i. C) an immediate increase in i and no initial change in Y. D) a gradual increase in i and an immediate increase in Y.