A decrease in the expected future price of cars
A) increases the current quantity demanded of cars, that is, there is a movement downward along the demand curve for cars.
B) increases the current demand for cars, that is, there is a rightward shift of the demand curve for cars.
C) decreases the current quantity demanded of cars, that is, there is a movement upward along the demand curve for cars.
D) decreases the current demand for cars, that is, there is a leftward shift of the demand curve for cars.
D
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The interest rate that banks charge other banks for loans is the
A) discount rate. B) prime rate. C) federal funds rate. D) Treasury bill rate.
At his profit-maximizing level of output, a monopolist’s average total cost curve is tangent to his demand curve. The monopolist
A. is earning a negative economic profit. B. may or may not be earning a negative economic profit. C. is earning zero economic profit. D. is earning a positive economic profit.
Although an improvement in technology enables perfectly competitive firms to earn a positive economic profit in the short run, entry by new firms will ensure that those profits are eliminated over time
Indicate whether the statement is true or false
The government of a country decides to reduce fiscal spending on national defense. The resulting economic change will be represented by a(n): a. upward movement along the short-run Phillips curve. b. downward movement along the short-run Phillips curve. c. rightward shift of the short-run Phillips curve
d. leftward shift of the short-run Phillips curve.