According to the law of demand, the quantity demanded of a good is related to
A) the average price of all goods.
B) income.
C) any factor that affects the decision of an individual consumer but not the market.
D) the relative price of that good.
Answer: D
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Explain why economies with financial account surpluses usually have current account deficits
What will be an ideal response?
About one out of every _________ Hispanics is poor.
Fill in the blank(s) with the appropriate word(s).
Suppose the reserve ratio is 25% and banks do not hold excess reserves. When the Fed sells $40 million of bonds to the public,
A) bank reserves increase by $40 million and money supply could increase by a maximum of $40 million. B) bank reserves increase by $40 million and money supply could increase by a maximum of $160 million. C) bank reserves decrease by $40 million and money supply could decrease by a maximum of $40 million. D) bank reserves decrease by $40 million and money supply could decrease by a maximum of $160 million.
Refining gasoline for our cars requires a very specialized resource, crude oil. As a result, the
A) demand for gasoline is price elastic. B) demand for gasoline is price inelastic. C) supply of gasoline is price elastic. D) supply of gasoline is price inelastic.