If exports rose and imports fell,
a. AD would decrease
b. AD would increase.
c. AD would be unaffected.
d. AD could either increase or decrease.
b
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As more and more businesses accept credit cards, the
A) demand for money decreases. B) supply of money decreases. C) quantity of money demanded decreases. D) demand for money increases. E) quantity of money demanded increases.
Distinguish between a positive statement and a normative statement and provide examples
What will be an ideal response?
Kate and Alice are small-town ready-mix concrete duopolists. The market demand function is Qd = 20,000 - 200P where P is the price of a cubic yard of concrete and Qd is the number of cubic yards demanded per year. Marginal cost is $80 per cubic yard. Suppose Kate enters the market first and chooses her output before Alice. What is the difference in Alice's profit when Kate enters the market first, compared to when they simultaneously select their outputs?
A. When Kate enters the market first, Alice's profit is $13,333.33 lower. B. When Kate enters the market first, Alice's profit is $5,000 lower. C. When Kate enters the market first, Alice's profit is $1,111.11 higher. D. When Kate enters the market first, Alice's profit is $3,888.89 lower.
The market for "lemons" is one in which
a. the rational buyer discounts b. the seller's product claims are unverifiable at the point of purchase c. "the bad apples drive out the good" d. the problem of adverse selection is rampant e. all of the above