By itself, an increase in the number of suppliers in a market results in a
A) rightward shift in the supply curve.
B) leftward shift in the supply curve.
C) movement down along the supply curve.
D) Both answers A and C are correct.
Ans: A) rightward shift in the supply curve.
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European governments removed many restrictions on flows of capital into and out of Europe in the ________. This policy increased both U.S. investment in European stocks and bonds and European investment in U.S. stocks and bonds
A) 1980s and 1990s B) 1970s and 1980s C) 1960s and 1970s D) 1950s and 1960s
Refer to Figure 4-9. The price buyers pay after the tax is
A) $12. B) $8. C) $5. D) $3.
When the Federal Reserve buys Treasury bonds, it is called
A) a swap. B) an open market operation. C) a bond roll-over. D) bonding.
Suppose that the interest rate paid to savers increases. As a result, Tom wishes to save less. This suggests that, for Tom,
A) the substitution effect is greater than the income effect. B) the income effect is greater than the substitution effect. C) utility maximization is not occurring. D) future consumption is a luxury.