Other things remaining the same, a left shift in the supply curve will lead to:
A) a decrease in the equilibrium price and the equilibrium quantity.
B) an increase in the equilibrium price and the equilibrium quantity.
C) a decrease in the equilibrium price and an increase in the equilibrium quantity.
D) an increase in the equilibrium price and a decrease in the equilibrium quantity.
D
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The four components of aggregate expenditure are
A. consumption, investment, government transfers, and net interest. B. spending on durable goods, inventory investment, government debt, and net exports. C. spending on domestic goods, domestic services, foreign goods, and foreign services. D. consumption, investment, government purchases, and net exports.
Governments run a balanced budget when
A) their debt is interest-free. B) transfer payments equal zero. C) revenues equal spending. D) revenues exceed spending.
When the domestic currency is initially overvalued in a fixed exchange rate regime, the central bank must intervene in the foreign exchange market to ________ the domestic currency, thereby allowing the money supply to ________
A) purchase; decline B) sell; decline C) purchase; increase D) sell; increase
Vacation tours to Europe invariably package visits to disparate regions: cities, mountains, and the seaside. Bundling, a type of second degree price discrimination, is most profitable when:
a. the preference rankings of vacationers travelling together are negatively correlated. b. a preference for cities is always higher than preferences for mountain vistas. c. preference rankings of vacationers travelling together are positively correlated. d. preference for the seaside is always higher than preferences for city excursions. e. no one wants to take a European vacation package to cities, mountains, and the seaside.