According to liquidity preference theory, if the quantity of money supplied is greater than the quantity demanded, then the interest rate will
a. increase and the quantity of money demanded will decrease.
b. increase and the quantity of money demanded will increase.
c. decrease and the quantity of money demanded will decrease.
d. decrease and the quantity of money demanded will increase.
d
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Scalping at major sporting events is an example of
A. a black market caused by a price floor. B. the operation of rationing by the market. C. a black market caused by a price ceiling. D. a surplus caused by the existence of price ceilings.
When demand falls and supply remains the same, equilibrium price _______ and equilibrium quantity ________.
A. falls; falls B. rises; rises C. falls; rises D. rises; falls
Japan has developed a comparative advantage in designing and producing automobiles. The source of its comparative advantage in these products is
A) technology. B) a strong central government. C) a favorable climate. D) abundant supplies of natural resources.
A decrease in price:
A. causes a decrease in total revenue due to the quantity effect. B. causes an increase in total revenue due to the price effect. C. does not cause a quantity effect when demand is perfectly inelastic. D. does not change quantity demanded if demand is elastic.