"A decrease in the price of digital cameras will decrease the demand for camera film." This statement is an example of a positive economic statement
Indicate whether the statement is true or false
TRUE
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Although debt contracts require less monitoring than equity contracts, debt contracts are still subject to ________ since borrowers have an incentive to take on more risk than the lender would like
A) moral hazard B) agency theory C) diversification D) the "lemons" problem
An increase in the supply of money would decrease the interest rate and increase aggregate demand, other things equal
a. True b. False Indicate whether the statement is true or false
Another term for "economic models" is
A. economic systems. B. economic institutions. C. economic theories. D. economic science.
The diagram suggests that:
A. X and Y are both inferior goods.
B. X and Y are both normal goods.
C. X and Y are substitute goods.
D. X and Y are independent goods.