In international exchange markets, a rise in interest rates in the United States will cause the demand for dollars to ________ and the supply of dollars to ________
A) increase; increase B) decrease; increase C) decrease; decrease D) increase; decrease
D
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Assume that the price for lawn care has fallen and sales of lawn care services have also fallen. One can conclude that
A) the demand for lawn care service has decreased. B) the law of supply has been violated. C) lawn care services are deliberately charging low prices because they want to discourage people from maintaining their own lawns. D) the number of lawn care service companies has increased.
Refer to the above table. Suppose the price of Y rises from $18 to $20. What is the cross price elasticity of demand between Y and Z?
A) -1.7273 B) -1.1176 C) -0.8947 D) +1.7273
All of the following apply to the description of a market in equilibrium except
a. quantity supplied equals quantity demanded b. the intersection of the supply and demand curves c. no excess supply exists d. no excess demand exists e. the price of the good is falling
According to the standard textbook Keynesian analysis, which is greater: the tax multiplier or the government spending multiplier? Explain the reasoning behind this relationship