Which of the following is not true about the housing market?
a. The price of housing will increase or decrease in order to achieve an equilibrium
b. An increase in the demand for housing will cause an increase in the quantity supplied of housing
c. When the demand for housing increases, the price of housing will increase but the quantity supplied will not increase in the short run
d. The housing market is a unique market because most people had to borrow money to buy their homes
e. The only way to increase the supply of housing is to build more houses
B
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If interest rates fall in country A, other things constant,
a. demand for that country's currency will fall and the currency will depreciate b. demand for that country's currency will fall and the currency will appreciate c. demand for that country's currency will rise and the currency will depreciate d. demand for that country's currency will rise and the currency will appreciate e. people in country B will pull money out of country A
The law of comparative advantage explains why a nation will benefit from trade when
a. it exports more than it imports. b. its trading partners are experiencing offsetting losses. c. it exports goods for which it is a high-opportunity cost producer, while importing those for which it is a low-opportunity cost producer. d. it exports goods for which it is a low-opportunity cost producer, while importing those for which it is a high-opportunity cost producer.
A foreign exchange intervention by a central bank affects the value of a country's currency if it:
A. results in a fixed exchange rate. B. leaves domestic interest rates unchanged. C. alters banking system reserves and it changes domestic interest rates. D. alters banking system reserves.
Suppose the growth rate of GDP in the United States is 4.2 percent. If 1.1 percent and 1.4 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is:
A. 0.3 percent. B. 1.1 percent. C. 1.4 percent. D. 1.7 percent.