Suppose that a successful advertising and promotion campaign occurs for apples. Given this successful campaign, it is likely that:
A) The quantity of apples sold will fall and the price of apples will fall.
B) The quantity of apples sold will fall and the price of apples will rise.
C) The quantity of apples sold will rise and the price of apples will fall.
D) The quantity of apples sold will rise and the price of apples will rise.
Answer: D
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The indirect effect of an increase in the money supply is to
A) raise interest rates so people will save more. B) lower interest rates, which stimulates both investment and consumption spending. C) put more cash in people's pockets, thereby increasing aggregate demand. D) pay off a portion of the public debt.
Which of the following Fed actions will decrease the money supply?
A) an open market purchase of Treasury bills B) an increase in the required reserve ratio C) a decrease in the discount rate relative to the federal funds rate D) all of the above E) none of the above
Which of the following best characterizes the current U.S. exchange rate policy?
A. A fixed exchange rate B. A crawling pegged exchange rate C. A freely floating exchange rate D. An adjustable pegged exchange rate
Article 126 of the Treaty on the functioning of the European Union stated that the member nations had to maintain a deficit to GDP ratio of
A. less than 3 percent. B. equal to 3 percent. C. higher than 5 percent. D. equal to 4 percent.