Assume that pencils and pens are substitutes. If the price of pencils rises ceteris paribus, then we will see
A. A decrease in the demand for pens.
B. A decrease in the supply of pens.
C. An increase in the demand for pens.
D. An increase in the supply of pens.
Answer: C
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The wealth of most people declined as a result of the financial crisis of 2007-2009. As a result, which asset was most likely became a larger portion of their portfolio?
A) bonds B) stocks C) house D) checking account
Each person who is 16 years or older is considered to be in one of the following categories:
A. employed, unemployed, or discouraged worker. B. employed, unemployed, or out of the labor force. C. part-time worker, full-time worker, or unemployed. D. part-time worker, full-time worker, or out of the labor force.
Which of the following would shift the supply curve for loans to the right, reducing short-term interest rates?
A. A reduction in discount lending by the Fed to banks B. An increase in the amount of money the Fed makes available to banks C. An increase in the desire of consumers to borrow money D. An increase in margin requirements
The benefit of holding money is ________, while the opportunity cost of holding money is ________.
A. its usefulness in carrying out transactions; the nominal interest rate B. increased income; lost purchasing power C. the nominal interest rate; the fees charged by banks D. the nominal interest rate; its usefulness in carrying out transactions