If the demand for a product decreases, we would expect that price will initially ________, and eventually ________.
A. rise; fall
B. rise; continue to rise
C. fall; rise
D. fall; continue to fall
Answer: C
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Based on the case study, "Exchange Rates, Auto Prices, and Currency Wars," explain why exchange rates are of critical importance to firms in the automobile industry, and how Japan has benefited from changes in the value of the Yen
What will be an ideal response?
The decrease in consumer spending that occurred after the collapse of the housing bubble caused aggregate:
A. demand to increase. B. demand to decrease. C. supply to increase. D. supply to decrease.
Considering only its direct effect on income, expansionary fiscal policy tends to:
A. decrease income and imports, shifting the U.S. trade balance in the direction of a surplus. B. increase income and imports, shifting the U.S. trade balance in the direction of a surplus. C. decrease income and imports, shifting the U.S. trade balance in the direction of a deficit. D. increase income and imports, shifting the U.S. trade balance in the direction of a deficit.
If the national debt is owned by domestic citizens,
A. the debt will not have to be repaid. B. future interest payments transfer funds from one group of Americans to another. C. the debt will have to be repaid first to domestic creditors, then to foreign creditors. D. future interest payments will go to pay foreign debt first, then debt owed to American citizens.