There is a 15 percent increase in the price of lumber used by a firm that builds new homes. This causes
A) a decrease in the quantity of new homes supplied.
B) an increase in the supply of new homes.
C) an increase of the quantity supplied of new homes.
D) a decrease in the supply of new homes.
D
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The exchange rate that is established in the absence of foreign exchange market intervention by the government is known as a(n):
a. historical anachronism. b. fixed exchange rate. c. "dirty float" exchange rate. d. unmanaged exchange rate. e. free market equilibrium exchange rate.
Suppose the money multiplier in the United States is 2.5. If the Fed wants to reduce the money supply by 1,000 it should:
A. sell government securities worth 400. B. buy government securities worth 400. C. sell government securities worth 250. D. buy government securities worth 250.
Ray's company just announced that everyone will be getting their pay cut by 5% in order to avoid having to close down. Ray's demand for coffee, a normal good, will likely:
A. decrease, and his demand curve will shift to the left. B. increase, and his demand curve will shift to the right. C. increase, and his demand curve will shift to the left. D. decrease, and his demand curve will shift to the right.
Congress chartered sallied me to make loans to:
A. customers of securities brokers. B. students. C. small business owners. D. homeowners.