An increase in government spending is a ________ fiscal policy action
Fill in the blank(s) with correct word
Expansionary
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An increase in the demand for washing machines might be caused by
A. a decrease in the number of buyers. B. an expected increase in the price of washing machines. C. a decrease in the price of washing machines. D. an expected decrease in the price of washing machines.
A newspaper headline asserts: "Rising demand pulls up copper prices." The headline
A) is claiming demand determines price (rather than price determining demand). B) is claiming more copper would be demanded at higher prices. C) is claiming prices will fluctuate indefinitely. D) is guilty of all three errors mentioned above. E) makes perfectly good sense from the standpoint of economic theory.
Why may some investors prefer forward contracts to futures?
What will be an ideal response?
Which of the following is not an example of nonprice competition?
a. Kellogg's introduces Froot Loops with Lemonberry Swirls. b. Sterling Planet provides consumers the opportunity to purchase renewable electricity in upstate New York. c. Mountain Dew sells "Livewire" orange soda in the summer of 2003. d. Nissan lowers the interest rate charged for new automobile financing. e. Honda produces a hybrid version of its Civic.