Suppose that X and Y are substitute goods. If the price of good X increases, we can expect:
a. the demand for good X to shift to the left.
b. an upward movement along the demand curve for good Y.
c. the demand curve for good Y to shift to the right.
d. a downward movement along the demand curve for good Y.
e. the demand curve for good Y to shift to the left.
c
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Fiscal policy involves manipulating ________
A) the supply of money B) consumption spending C) federal subsidies and minimum wage values D) government spending and taxes
During the mid and last part of the 1990's both inflation and unemployment were low. In general this could have been the result of
a. adverse supply shocks that shifted the short-run Phillips curve left. b. adverse supply shocks that shifted the short-run Phillips curve right. c. favorable supply shocks that shifted the short-run Phillips curve left. d. favorable supply shocks that shifted the short-run Phillips curve right.
Which of the following companies would gain from foreign currency depreciation?
A. Companies that borrow in foreign currency. B. Companies that export goods and services. C. Companies that invest in the foreign equity markets. D. Companies that buy bonds issued by the foreign government.
A general equilibrium analysis of a price change in the corn chip market would include an investigation of the impacts in
A) the television market. B) the coffee market. C) the salsa market. D) All of the above.