As the price of good X rises, the demand for good Y falls. Therefore, goods X and Y are
A) substitutes.
B) normal goods.
C) complements.
D) inferior goods.
E) none of the above
C
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If future price changes were perfectly anticipated by both borrowers and lenders, then _____
a. the expected real interest rate would be higher than the actual rate b. the expected real interest rate would lower than the actual rate c. the real interest rate in the future would decrease by the amount of the price increase d. the real interest rate in the future would increase by the amount of the price increase e. the real interest rate in the future would remain unchanged
Use the concept of economic rent to explain how rent controls could have an effect quite opposite to the intention
According to the quantity theory of money, a 10 percent increase in the money supply leads to a 10 percent increase in:
A. velocity. B. unemployment. C. the price level. D. real GDP.
One explanation for the existence of an increasing-cost industry is:
A. Increasing marginal returns to labor occur B. Firms produce beyond the point of minimum long-run average total costs C. Perfectly elastic long-run supply schedules are observed in the industry D. As the industry expands, prices are bid up for some factors of production