An increase in price:
A. cannot cause a quantity effect.
B. causes an increase in quantity demanded.
C. causes a decrease in revenue resulting from selling fewer units and a simultaneous increase in revenue resulting from receiving a higher price.
D. cannot cause a price effect.
Answer: C
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When Grayce deposits $4,000 cash in her checkable deposit at the Beach Bank and the Beach Bank's excess reserves increase by $3,600, the desired reserve ratio is
A) 5 percent. B) 90 percent. C) 10 percent. D) 15 percent. E) $400.
Each citizen in Nexus City has to pay $20,000 as income tax. This is an example of a ________
A) proportional income tax B) progressive income tax C) lump-sum tax D) regressive income tax
Why do some firms choose not to file for a patent and instead try to keep the results of their research a trade secret?
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A) can be explained using theories of risk premium. B) cannot be explained using theories of risk premium. C) may or may not be able to be explained using theories of risk premium, more research is needed. D) are completely unrelated to risk premium. E) occur when risk premium is over calculated.