The price of pineapples has risen dramatically. Which of the following is likely to happen?
A. The quantity of pineapples supplied will increase.
B. The quantity of pineapples supplied will decrease.
C. The supply of pineapples will decrease.
D. The supply of pineapples will increase.
Answer: A
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Which of the following affects the amount of money a person is willing to hold?
A) The use of credit cards increases. B) The price level rises from 103 to 107. C) The interest rate that you earn on your savings account increases. D) All of the above are correct.
If the level of government spending rises and simultaneously there is a fall in the money stock, we definitely know that
a. income will rise. b. the change in the interest rate will be ambiguous. c. income will fall. d. the interest rate will fall. e. None of the above
People know that the inflation rate will increase from 3 percent to 5 percent. As a result
A) the nominal interest rate falls by 2 percentage points. B) the nominal interest rate is constant. C) the nominal interest rate rises by 2 percentage points. D) the real interest rate rises by 2 percentage points.
A major fruit juice manufacturer failed in its attempt to engage in price discrimination between students and all other consumers. What is the most likely explanation for this failure?
a. There was nothing to prevent the students from reselling the fruit juice to other consumers. b. The two groups of consumers have different demand elasticities for fruit juice. c. The cost of producing the product is relatively high. d. Market demand for fruit juice is inelastic.