If more buyers came into the market for a good, we would expect to see the market demand curve
A) shift inward and to the left.
B) remain unchanged since none of the determinants of individual demand changed.
C) shift outward and to the right.
D) reflect a positive relationship between price and quantity demanded.
Answer: C
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A competitive market is always efficient
Indicate whether the statement is true or false
Of the four factors that influence asset demand, which factor will cause the demand for all assets to increase when it increases, everything else held constant?
A) wealth B) expected returns C) risk D) liquidity
When a currency is overvalued, international reserves ________ and the country has a balance-of-payments ________.
A. decrease; surplus B. decrease; deficit C. increase; deficit D. increase; surplus
Answer the following questions true (T) or false (F)
1. A repurchase agreement is the same as an open market purchase of Treasury securities. 2. Changes in interest rates affect all four components of aggregate demand. 3. Expansionary monetary policy refers to the Fed's increasing the money supply and increasing interest rates to increase real GDP.