Precautionary demand for money will fall when
A) the interest rate rises.
B) the interest rate falls.
C) the money supply increases.
D) government spending falls.
A
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If a good is inferior, then it has an income elasticity of demand that is
A) equal to zero. B) greater than zero. C) less than zero. D) greater than one. E) undefined.
If a firm is maximizing profits, the extra revenue it receives from selling its last unit of output exceeds the extra cost of producing that unit
Indicate whether the statement is true or false
If an excise tax is imposed on a product, consumer surplus and producer surplus for this good will most likely change in which of the following ways?
What will be an ideal response?
Refer to the information provided in Table 8.7 below to answer the following question(s).
Table 8.7 
Refer to Table 8.7. Assume that fruit baskets are sold in a perfectly competitive market. The market price of a fruit basket is $22. To maximize profits, Exotic Fruit should sell ________ fruit baskets and their profit is ________.
A. three; $5 B. four; $7 C. five; $14 D. six; $14