Assume that the supply curve for a commodity shifts to the left and the demand curve shifts to the right, and the shift in demand is greater than the shift in supply
Then, in comparison to the initial equilibrium, the new equilibrium will be characterized by: A) a lower price and quantity.
B) a higher price and quantity.
C) a higher price and a lower quantity.
D) a lower price and a higher quantity.
B
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What will be an ideal response?
In the 1980s, banks responded to the loss of loans to the commercial paper market by increasing loans to all the following except
A) less creditworthy businesses. B) commercial real estate loans. C) loans to less-developed countries. D) large corporations.
The AFL was formed to promote
a. social equality b. business profits c. environmental causes d. strictly economic goals e. political changes
Some economists argue suddenly reducing money supply growth is a costly way to reduce inflation and that it may not work. For example, if a government cuts money growth but makes no real fiscal reforms, people will expect the government will eventually
need to expand the money supply to pay for its expenditures. Thus, the promise to fight inflation will not be credible. Explain why credibility is important to a reduction in the inflation rate.