Expansionary monetary policy causes what?
a. a decrease in money supply
b. an increase in interest rate
c. a decrease in interest rate
d. fewer loans to be initiated
c. a decrease in interest rate
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Refer to the table above. What is Seller 3's producer surplus?
A) $1 B) $2 C) $3 D) $4
If an upstream firm and a downstream firm want to establish a contract, all of the following costs can be incurred except which one?
A) search costs B) negotiation costs C) enforcement costs D) monitoring costs
If the actual market price were fixed at $15 per unit in Figure 3.2,
Figure 3.2 Supply and Demand
A. There would be a shortage of 40 units. B. There would be a shortage of 20 units. C. There would be a surplus of 20 units. D. There would be a surplus of 40 units.
The market demand for school supplies is more elastic at the beginning of the semester than it is at the start of summer vacation.
Answer the following statement true (T) or false (F)