Refer to Figure 14.2. A movement from point b to point d could be caused by a(n):
A. decrease in government spending.
B. increase in the price of oil.
C. decrease in taxes.
D. increase in short-run aggregate supply.
Answer: C
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When bankers make loans they do not have an adverse selection problem
Indicate whether the statement is true or false
If the price is reduced from $100 to $80 in Figure 20.1, ceteris paribus,
A. Total revenue will decrease. B. Total revenue will increase. C. Quantity demanded will decrease. D. Demand will increase.
Economists assume that people are motivated by
A. altruism. B. greed. C. rational self-interest. D. benevolence.
If Canadian speculators expect the euro to appreciate against the U.S. dollar, they would
A. use Canadian dollars to buy euros, instantly use the euros to buy U.S. dollars, and then, instantly use the U.S. dollars to buy Canadian dollars. B. purchase euros. C. purchase U.S. dollars. D. purchase Canadian dollars.