A fundamental principle in demand analysis is that a change in price leads to
A) a movement along the demand curve.
B) a rightward shift of the demand curve.
C) a leftward shift of the demand curve.
D) a complementary movement on the supply curve.
A
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If the Fed is concerned about inflation, its actions ________ long-term interest rates so that investment ________ and net exports ________
A) lower; increases; decrease B) raise; decreases; decrease C) lower; increases; increase D) raise; increases; increase E) lower; decreases; decrease
In general economic environments that correspond to higher levels of planned aggregate expenditure for a given level of Y have PAE curves that are:
A. higher on the expenditure diagram. B. lower on the expenditure diagram. C. at multiple points on the diagram. D. equivalent at point in the diagram.
Total expenditures can be written as C + I + G + (X ? IM).
Answer the following statement true (T) or false (F)
When the central bank sells $1,000,000 worth of government bonds to the public, the money supply:
A. increases by $1,000,000. B. decreases by $1,000,000. C. decreases by less than $1,000,000. D. decreases by more than $1,000,000.