Suppose that the supply curve remains unchanged. If the demand curve shifts to the right
A) the market clearing price definitely will decrease.
B) the market clearing price definitely will increase.
C) there will be no change in the market clearing price.
D) the market will collapse.
B
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If a savings and loan "pools risk," which of the following must it do?
A) take funds in from a large number of lenders B) have a large spread between the interest rate it charges borrowers and the interest rate it pays lenders C) lend money to a large number of firms D) Both answers A and C are correct.
If the market price is $40, the average revenue of selling five units is
A) $8. B) $20. C) $40. D) $200.
A hyperinflation occurs when
A) inflation persists for more than two years. B) inflation persists for more than five years. C) the inflation rate exceeds 50% per year. D) the inflation rate exceeds 50% per month
A higher price for a good will cause the budget constraint to rotate toward the origin
a. True b. False Indicate whether the statement is true or false