If the desired amount demanded is greater than the desired amount supplied, then:
a. Business inventories could be rising or falling, depending on how they are valued.
b. Business inventories are falling.
c. Increases in residential construction are usually the reason, because they are measured at the end of each period.
d. It is impossible for demand to be greater than supply, because supply limits demand.
e. None are correct.
.B
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Ordinarily the Fed lends money only to banks, but during the Great Recession of 2007-2009 the Fed extended its lender-of-last-resort role to other financial institutions. These institutions included
A) securities dealers. B) investment banks. C) high-quality corporations. D) all of the above
If price falls, what happens to the demand for a product?
a. It increases. b. It decreases. c. It does not change. d. Uncertain--economic theory has no answer to this question.
Which country has had a higher growth rate than the US over about the last 120 years?
a. Argentina b. Germany c. the United Kingdom d. None of the above is correct.
The law of demand states that
A. the quantity demanded is directly related to price. B. people demand less at lower prices. C. changes in price and changes in quantity demanded move in the same direction. D. the quantity demanded is inversely related to price.