Which of the following would most likely increase the demand for gasoline?
A. the expectation by consumers that gasoline prices will be lower in the future
B. the expectation by consumers that gasoline prices will be higher in the future
C. an increase in the price of gasoline
D. a decrease in the price of gasoline
Answer: B
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The level of detail in an economic model
a. is as close as possible to the level of detail in reality b. depends on the purpose of the model c. is as complex as possible d. is the same regardless of the purpose of the model e. is as complex as possible to accomplish its purpose
Which of the following describes the out-of-pocket costs a firm pays?
a. Revenue costs b. Explicit costs c. Economic costs d. Implicit costs
If the interest rate is 8 percent, then the present discounted value of $100 to be received two years from now is closest to
A. $116.00. B. $86.00. C. $96.00. D. $128.00.
Milton Friedman argued that the economy is not in long-run equilibrium if the expected inflation rate __________ the actual inflation rate
A) is less than B) is greater than C) equals D) a and b