An increase in demand could be caused by
a. a decrease in price
b. a decrease in income, assuming the good is inferior.
c. buyers expecting the price of the good to fall in the near future.
d. an increase in the price of a complement.
b
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Assume a money multiplier of 3. If the Treasury finances a $30 million expenditure by selling securities to the Fed, the money supply could ultimately
A) rise by $3 million. B) rise by $10 million. C) rise by $30 million. D) rise by $90 million.
Which of the following is most likely a topic of discussion in economics?
a. Families must decide whether to spend their money on a new car or a fancy vacation. b. Nations must choose whether to put more of the budget into police and fire protection or into the school system. c. Towns must choose whether to put more of the budget into police and fire protection or into national defense. d. Nations must decide whether to devote more funds to national defense or to police and fire protection.
Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital. 
If the amount of labor used increases from three to four units, the marginal product of the second unit of capital
A. decreases by 49 units. B. increases by 49 units. C. decreases by 14 units. D. increases by 8 units. E. none of the above
A shift from S1 to S2 reflects the change that happens when a negative externality is taken into account. A shift from D1 to D2 reflects the change that happens when a positive externality is taken into account.Refer to the above figures. Which of the panels would be consistent with the situation in which external costs exist?
A. Panel 1 B. Panel 2 C. Panels 1 and 2 D. neither panel