If the market for tires is unregulated and is presently characterized by excess supply, you can accurately predict that price will
A. decrease, the quantity demanded will fall, and the quantity supplied will rise.
B. increase, the quantity demanded will rise, and the quantity supplied will fall.
C. increase, the quantity demanded will fall, and the quantity supplied will rise.
D. decrease, the quantity demanded will rise, and the quantity supplied will fall.
Answer: D
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Equilibrium GDP will not exist where output exceeds aggregate demand because businesses will notice that
A. their profits are positive. B. inventory stocks are building up. C. inventory stocks are being depleted. D. their level of depreciation is rising.
Which of the following statements is true?
A) Out of two loans, the interest accumulated after the end of a year will be more on the one that is a larger principal. B) Banks are the only financial institutions that lend money and do not accept deposits. C) Out of two loans, the interest accumulated after the end of a year will be more on the one that is a smaller principal. D) Banks are the only financial institutions that do not lend money but accept deposits.
Assume that at the current market price of $4 per unit of a good, you are willing and able to buy 20 units. Last year at a price of $4 per unit, you would have purchased 30 units. What is most likely to have happened over the last year?
a. Demand has increased b. Demand has decreased c. Supply has increased d. Supply has decreased e. Quantity supplied has decreased
Which of the following statements is true?
A. If foreign interest rates increase, the domestic interest rate remaining unchanged, there will be international financial repositioning toward domestic-currency assets and the domestic currency will appreciate. B. If the domestic interest rate rises, there will be international financial repositioning toward domestic-currency assets, thereby causing the domestic currency to appreciate. C. If the expected future spot exchange rate value of the foreign currency decreases, there will be international financial repositioning toward foreign-currency assets, thereby causing the domestic currency to depreciate. D. If the expected future spot dollar per euro exchange rate increases, there will be international financial repositioning toward the dollar-denominated assets thereby causing the euro to depreciate.