Which of the following will shift the demand curve for milk?
A. Change in the income of buyers of milk
B. Change in the price of milk
C. Change in input prices for milk
D. All of these responses are correct.
Answer: A
You might also like to view...
Does monetary policy require the accompaniment of fiscal policy to change total spending?
A) No, because the Fed is an independent agency of the federal government. B) Yes, because monetary policy can contract total spending but cannot by itself expand it. C) Yes, because no policy is effective if it only changes nominal money values. D) Yes, if the demand for money tends to change in about the same direction and amount whenever the supply changes.
In which of the following examples does the firm acquire financial capital from households through a financial intermediary?
A. A firm sells a bond to John Doe. B. The firm sells a bond to an employee pension fund. C. The firm uses retained earnings to purchase shares of its stock owned by a mutual fund company. D. The firm uses retained earnings to purchase shares of its stocks owned by individuals.
What role can the government play in correcting for externalities?
What will be an ideal response?
When the Fed buys $100 worth of bonds from a primary dealer, reserves in the banking system
A) increase by $100. B) increase by more than $100. C) decrease by $100. D) decrease by more than $100.