"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises.". This relationship between price and quantity demanded
a. applies to most goods in the economy.
b. is represented by a downward-sloping demand curve.
c. is referred to as the law of demand.
d. All of the above are correct.
d
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If the Fed conducts an open market purchase of Treasury bonds, this will
A) encourage banks to make more loans and will increase the money supply. B) encourage banks to make more loans and will decrease the money supply. C) cause banks to reduce their loans and will increase the money supply. D) cause banks to reduce their loans and will decrease the money supply.
Deadweight loss results from a misallocation of resources
a. True b. False Indicate whether the statement is true or false
A price index is a measure of the average level of prices in an economy
a. True b. False Indicate whether the statement is true or false
The Justice Department brought suit against Microsoft contending ____________.
A. the company forced PC makers to take Internet Explorer as a condition of licensing Windows B. the company's growing market power enabled them to crush competitors C. the merger with Netscape's browser, Navigator, was in violation of Microsoft's consent decree D. None of the choices are correct.