Two goods are considered substitutes only if a(n):
a. decrease in the demand for one leads to a decrease in the supply of the other.
b. increase in the demand for one leads to a decrease in the supply of the other.
c. increase in the price of one leads to an increase in the demand for the other.
d. decrease in the price of one leads to an increase in the demand for the other.
e. decrease in the supply of one leads producers to switch to production of the other.
c
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A $1000 face value coupon bond with a $60 coupon payment every year has a coupon rate of
A) .6 percent. B) 5 percent. C) 6 percent. D) 10 percent.
Suppose that a monopolist must choose between two points on its demand curve: it can sell 100 units for $3 each, or it can sell 140 units for $2 each. Which of the following is true?
a. The monopolist is facing elastic demand. b. The monopolist is facing unit elastic demand. c. The monopolist is facing inelastic demand. d. The monopolist is facing perfectly elastic demand. e. The elasticity of demand cannot be determined with the information given.
Suppose you put $500 into a bank account today. Interest is paid annually and the annual interest rate is 8 percent. The future value of the $500 after 2 years is
a. $428.67. b. $470.00. c. $580.00. d. $583.20.
Based on the graph showing an increase in the growth of the money supply, the implication of the economy moving from point A to point C is that policies to alter output or unemployment ______.
a. can eliminate long-term unemployment problems
b. can help the economy sustain high output levels over long periods
c. take a long time to produce any noticeable effects
d. are ineffective over time because the economy returns to natural levels