Of the following, which could cause the demand curve for personal computers to shift to the left?
a. a decrease in the price of personal computers
b. an increase in the price of computer software
c. a decrease in the price of computer software
d. an increase in wealth (assuming personal computers are a normal good)
e. expectations of an increase in the price of personal computers in the future
B
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If you use $500 of currency to make a deposit in a saving deposit
A) M1 decreases, but M2 is unchanged. B) M1 decreases and M2 increases. C) M1 is unchanged, but M2 increases. D) M1 and M2 both increase.
Since the 1930s, the Fed's most important tool for controlling the money supply has been
A) setting the discount rate. B) setting reserve requirements. C) moral suasion. D) open-market operations.
Mark, a U.S. citizen, buys stock in a British Shipping company. This purchase is an example of
a. investment for Mark and U.S. foreign direct investment. b. investment for Mark and U.S. foreign portfolio investment. c. saving for Mark and U.S. foreign direct investment. d. saving for Mark and U.S. foreign portfolio investment.
Suppose that you have wheat in storage and that the price of wheat is currently $5.00 per bushel. You can sell your wheat immediately but you also have an opportunity to sell in six months. At that time, you believe the price of wheat will be $5.60 per bushel. Your cost of storage is $0.75 per bushel for six months. One dollar in six months is worth one dollar today (no discounting). What strategy is profit maximizing?
A. Hold onto your wheat and sell in six months. B. Sell your wheat today. C. Minimize your losses by exiting the wheat market. D. Expand production to sell more wheat.