Refer to the above figure. At a price of four cents, a(n) ________ of bubble gum will exist in the market
A) surplus
B) shortage
C) excess quantity demanded
D) equilibrium quantity
A
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The issuer of a bond is a
A) borrower. B) creditor. C) saver. D) lender.
Answer the following statements true (T) or false (F)
1. An increase in the money supply always causes an increase in the price level. 2. The effect of a change in the money supply on economic activity may be offset by a change in velocity. 3. An increase in the velocity of money can have an effect similar to that of an increase in the money supply. 4. A government surplus may trigger a decline in the money supply. 5. If the CPI reads 150, prices have increased 50 percent since the base year.
Over time, housing shortages caused by rent control
A.decrease, because the demand for and supply of housing are less elastic in the long run. B.decrease, because the demand for and supply of housing are more elastic in the long run. C.increase, because the demand for and supply of housing are more elastic in the long run. D.increase, because the demand for and supply of housing are less elastic in the long run.
If a household's income doubles, its budget constraint will
A. shift in parallel to the old one. B. shift out parallel to the old one. C. pivot at the Y-intercept. D. be unaffected.