Refer to the graphs shown.
If income is $60 and the price of Y is $3, a decrease in the price of X from $3 to $2 would cause a movement:
A. from point A to point B.
B. along the demand curve from point E to point F.
C. from point C to point B.
D. along the demand curve from point D to point E.
Answer: B
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Figure 4.3 illustrates the demand for tacos. A decrease in the demand for tacos is represented by the movement from
A) point a to point b. B) point c to point b. C) D2 to D1. D) D0 to D1.
During the recession of 2008, the U.S.experienced lower real interest rates at the same time investment and GDP were falling
How would a Classical economist explain this recession? Provide a graph of the Classical capital market to illustrate your arguments.
Each of the following would decrease the supply of U.S. dollars, shifting the supply curve for dollars to the left, EXCEPT:
A. a decreased preference for foreign-made goods. B. a decrease in the real interest rate on foreign assets. C. a depreciation of the U.S. dollar relative to other currencies. D. a decrease in U.S. real GDP.
Considering the methods available to the FDIC for dealing with a failed bank, the depositors of the failed bank should:
A. prefer the purchase and assumption method since the deposits over $250,000 will also be protected. B. prefer the payoff method since a lot less paperwork is involved for the depositor. C. prefer the payoff method because they will have access to their funds earlier. D. be indifferent between the two since it really does not matter to them which method is used.