Which of the following would cause the equilibrium price of apple juice to decrease and the equilibrium quantity of apple juice to increase?
A) a decrease in the price of apples
B) an increase in the price of orange juice, a substitute for apple juice
C) an increase in the price of apples
D) a decrease in the price of granola bars, a complement for apple juice
A
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By enjoying more consumer goods today, the economy spurs growth in future consumer goods.
Answer the following statement true (T) or false (F)
If banks cannot lend all of their excess reserves:
a. the money multiplier increases. b. the money multiplier decreases. c. the money multiplier stays the same. d. the amount of loans by the bank increases. e. checkable deposits decrease.
When price is the rationing criterion, individuals have a strong incentive to
a. ignore the wishes of others when making decisions about how to use their resources. b. provide services to others in exchange for income. c. avoid exchanges because in every exchange there will be one person who gains and another who loses. d. substitute promises for the consistent delivery of a quality product.
An increase in the money supply is represented by a(n):
A. rightward shift of the downward-sloping money supply curve. B. upward shift of the money supply curve. C. rightward shift of the money supply curve. D. increase in the rate of interest.