The effect of an increase in consumer income on equilibrium price and quantity of Florida orange juice (a normal good) is
a. to increase equilibrium price and quantity
b. to decrease equilibrium price and quantity
c. to increase equilibrium price and decrease equilibrium quantity
d. to increase equilibrium quantity and decrease equilibrium price
e. that equilibrium price and quantity remain constant
A
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In the market for reserves, if the federal funds rate is above the interest rate paid on excess reserves, an open market sale ________ the ________ of reserves, causing the federal funds rate to increase, everything else held constant
A) increases; supply B) increases; demand C) decreases; supply D) decreases; demand
Which form of business organization accounts for the largest proportion of business sales in the United States?
a. sole proprietorship b. partnership c. corporation d. nonprofit organization e. conglomerate
When Smartville's personal computer assembly plant closed, 30% of the community's labor force was laid off. Following this event Joe's New Car Dealership (NCD, Inc) complained because the __________ new cars __________
a. quantity supplied of; fell b. supply of; increased c. quantity demanded of; fell d. demand for; fell e. demand for; was unchanged
Holding other factors constant, an increase in the tax rate on revenue generated by capital will:
A. decrease national saving. B. increase national saving. C. increase investment. D. decrease investment.