Which of the following is the most likely effect of lower apple juice prices on the price and quantity purchased of orange juice, a substitute product?
a. The price of orange juice will increase, and the quantity purchased will fall.
b. The price of orange juice will fall, and the quantity purchased will increase.
c. The price of orange juice will increase, and the quantity purchased will increase.
d. The price of orange juice will fall, and the quantity purchased will fall.
D
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Which of the following is a reason why decreases in the price level result in a rise in aggregate expenditure?
A) Price level decreases cause firms and consumers to hold less money, which lowers the interest rate. Lower interest rates raise consumption and planned investment expenditures, which raises aggregate expenditure. B) As the price level falls, government spending rises, which raises aggregate expenditure. C) Price level decreases in the United States relative to other countries' lower net exports, which raises aggregate expenditure. D) Price level decreases reduce real wealth, which causes consumption spending and aggregate expenditure to rise.
An increase in the U.S. demand for the Mexican peso
A) causes an increase in the U.S. dollar price of a Mexican peso. B) causes the Mexican peso to appreciate. C) causes the U.S. dollar to depreciate. D) causes Mexican goods to be relatively more expensive. E) All of the above.
What is the difference between a business cycle and the day-to-day ups and downs of the market?
What will be an ideal response?
A limit on the quantity of a good that may be imported in a given time period is
A. An import allocation. B. A comparative advantage. C. An import quota. D. A tariff.