If the demand curve for bikes shifts leftward and the supply curve for bikes shifts rightward, the equilibrium
A) price of bikes definitely increases.
B) price of bikes definitely decreases.
C) quantity of bikes definitely increases.
D) quantity of bikes definitely decreases.
B
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How does the long-run supply curve differ from the short-run supply curve for a perfectly competitive firm? Explain your answer
What will be an ideal response?
The FOMC ________
A) meets four times a year to decide on how to conduct open market operations that influence the money supply B) meets six times a year to decide on how to conduct open market operations that influence the money supply and interest rates C) meets eight times a year to decide on how to conduct open market operations that influence the money supply and interest rates D) meets twelve times a year to decide on how to conduct open market operations that influence interest rates E) none of the above
If Marginal cost is lower than Average Cost (AC), average cost is
a. falling b. rising c. constant d. none of the above
The crowding-out effect implies that:
a. increases in government purchases will lower interest rates and stimulate investment spending b. higher taxes reduce both consumption and saving. c. fiscal policy effects on interest rates will be offset by monetary policy. d. increases in government purchases increase income and the demand for loanable funds which will choke off some private spending.