According to Say's law
A) supply creates its own demand.
B) demand creates supply.
C) changes in supply create supply-side inflation.
D) changes in demand create demand-side inflation.
A
You might also like to view...
What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in the Canadian dollar:euro foreign exchange market and the Canadian central bank intervenes to offset the excess? Assume the M2 money multiplier is 3
a. The Canadian M2 money supply falls by 300 million euros worth of Canadian dollars. b. The Canadian M2 money supply rises by 300 million euros worth of Canadian dollars. c. The Canadian M2 money supply might fall or rise. d. The Canadian M2 money supply rises by 100 million euros worth of Canadian dollars. e. The Canadian M2 money supply falls by 100 million euros worth of Canadian dollars.
The price paid by buyers in a market will decrease if the government
a. imposes a binding price floor in that market. b. increases a binding price ceiling in that market. c. increases a tax on the good sold in that market. d. decreases a binding price floor in that market.
If the reserve ratio was 10 percent for the bank with the balance sheet listed below, then this bank is being ? Assets ? ? Liabilities & Net Worth ? Reserves $2,500,000 ? Checking Deposits $5,000,000 Loans Outstanding $2,000,000 ? ? ? Total $5,500,000 ? Net Worth ? ? ? ? Stockholders’ Equity $500,000 ? ? ? Total $5,500,000
A. aggressive as indicated by a small amount of excess reserves. B. aggressive as indicated by a large amount of excess reserves. C. cautious as indicated by a small amount of excess reserves. D. cautious as indicated by a large amount of excess reserves.
Which of the following asserts that temporary protection from international competition is needed for a nascent industry that initially has high costs?
A. The developing government argument B. The dying industry argument C. The optimal tariff argument D. The infant industry argument