People consume more soup as temperatures falls. So, as cold weather approaches,
A) the demand for soup increases.
B) people move farther beyond their demand curves.
C) the quantity of soup demanded increases.
D) people move closer to their demand curve for sou
A
You might also like to view...
Markets promote
A) competition and voluntary exchange. B) equity and competition. C) equity and equality. D) voluntary exchange and equality.
M2 includes
A) large-denomination time deposits. B) institutional MMMFs. C) commercial paper. D) M1.
Wes works as a delivery man and can work as many hours as he likes for $12 an hour. He typically works 40 hours a week. Recently, his pay has been cut, and Wes decides to work:
A. more hours, because the price effect dominates his labor supply decision. B. less hours, because the income effect dominates his labor supply decision. C. more hours, because the income effect dominates his labor supply decision. D. the same amount, because the price effect dominates his labor supply decision.
Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the nation's:
a. Real risk-free interest rate will fall causing real GDP to rise. b. Real risk-free interest rate will rise causing the monetary base, and therefore, the money supply to rise. c. Real risk-free interest rate will remain unchanged, but the money multiplier will rise. d. Real risk-free interest rate will rise but real GDP will remain the same. e. Real risk-free interest rate will fall causing the money multiplier to rise.