There is an increase in the demand for cream when the price of coffee falls. Other things constant, we can conclude that coffee and cream are
A) substitute goods.
B) inferior goods.
C) independent goods.
D) complementary goods.
D
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The typical shape for a yield curve is
A) gently upward sloping. B) mound shaped. C) flat. D) bowl shaped.
Suppose the government of a large open economy reduces its spending, so that national saving increases. The result is
A) a decrease in the foreign country's net exports. B) an increase in the real interest rate. C) an increase in the foreign country's net exports. D) a decrease in investment.
If the supply of a good decreased, what would be the effect on the equilibrium price and quantity?
a. Price would increase, and quantity would decrease. b. Price would decrease, and quantity would decrease. c. Price would increase, and quantity would increase. d. Price would decrease, and quantity would increase.
Refer to the above graph. Demand is price-elastic between points:
A. G and H. B. F and G. C. D and E. D. A and B.