Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded is
A) is less than the quantity supplied and a surplus results.
B) is less than the quantity supplied and a shortage results.
C) exceeds the quantity supplied and a surplus results.
D) exceeds the quantity supplied and a shortage results.
A
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The demand for loanable funds curve shows the
A) positive relationship between the interest rate and the quantity of loanable funds demanded. B) positive relationship between the demand for loanable funds curve and the supply of loanable funds curve. C) U-shaped relationship between the interest rate and the quantity of loanable funds demanded. D) negative relationship between the interest rate and the quantity of loanable funds demanded. E) negative relationship between the demand for loanable funds curve and the supply of loanable funds curve.
In the United States, globalization has caused the demand for unskilled labor to ________ and the demand for skilled labor to ________
A) decrease; increase B) decrease; decrease C) increase; increase D) increase; decrease
The assumption of rational behavior:
A. offers a perfect framework for how people actually behave. B. helps economists explain about how people behave in a way that will best achieve their goals. C. explains why people voluntarily engage in decisions for which costs exceed benefits. D. is best applied to psychology and should not be used in the science of economics.
When the required reserve ratio is lowered,
a. the money multiplier increases, and the amount of excess reserves increases in the banking system. b. the money multiplier decreases, and the amount of excess reserves increases in the banking system. c. the money multiplier decreases, and the amount of excess reserves decreases in the banking system. d. the money multiplier increases, and the amount of excess reserves decreases in the banking system. e. there is no change in either the money multiplier or the amount of excess reserves in the banking system.