Which of the following would shift the demand curve for cars to the right?
A. An increase in the federal funds rate
B. An increase in discount lending by the Fed to banks
C. An increase in the unemployment rate over the NAIRU
D. An increase in home mortgage interest rates
Answer: B
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A basic assumption used in many economic model is
A) as price goes up, the amount purchased will go up too. B) as price goes up, less will be offered for sale on the market. C) if the underlying theory doesn't represent reality, it is not useful. D) ceteris paribus, which means all other things remain unchanged.
For a promoter to maximize profit, he will have to sell out the venue.
Answer the following statement true (T) or false (F)
If a perfectly competitive firm is producing at its profit-maximizing output in the short run and fixed costs decline, the firm should
A. Use less capital but increase output by hiring more labor. B. Not change output. C. Increase output. D. Reduce output.
Suppose an individual experiences a $20,000 increase in real income and the individual believes this increase in income is permanent. Economic theory suggests that this individual's current consumption will
A) remain unchanged. B) increase by more than $20,000. C) increase by at most $20,000. D) decrease or remain unchanged, depending on the value of the real interest rate. E) decrease, remain unchanged, or increase, depending on the value of the real interest rate.