When supply increases and the supply curve shifts to the right, equilibrium price ________ and equilibrium quantity ________.
A. increases; increases
B. increases; decreases
C. decreases; increases
D. decreases; decreases
Answer: C
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Colleges offer tuition scholarships even when they are running budget deficits because colleges
A) are public service institutions. B) can often earn additional net income by offering tuition scholarships. C) hope to receive contributions later from the recipients of scholarships. D) set tuition levels and establish scholarship policies without considering the monetary advantages.
Restrictive fiscal policies
A. pull interest rates down. B. push interest rates up. C. have no impact on interest rates. D. none of these.
The most important factor that influences total spending is
a. the interest rate b. real wealth c. expectations regarding future income d. the income tax rate e. real disposable income
Which of the following is the Fed's best strategy for dealing with demand shocks?
a. Maintain a money supply target b. Decrease the money supply c. Maintain a passive monetary policy d. Neutralize the impact with an increase in the money supply e. Increase the interest rate