A decrease in demand will cause a surplus at the original market price
a. True
b. False
Indicate whether the statement is true or false
True
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Overuse of a common resource may be avoided by all of the following methods of government intervention except
A) restricting access to the resource. B) restricting the intensity of the use of the resource. C) issuing tradeable permits for the use of the common resource. D) government taking over ownership of all common resources.
A positive cross elasticity indicates a substitute relationship
Indicate whether the statement is true or false
Other things the same, if the exchange rate changes from 6 Chinese yuan per dollar to 7 Chinese yuan per dollar, then the dollar
a. appreciates and buys more Chinese goods. b. appreciates and buys fewer Chinese goods. c. depreciates and buys more Chinese goods. d. depreciates and buys fewer Chinese goods.
An increase in the reserve deposit ratio, ?, will most likely have which of the following effects?
A) a rightward shift in the IS curve B) a leftward shift in the IS curve C) an upward shift in the LM curve D) a downward shift in the LM curve