When the price of a good increases,
a. the opportunity cost of producing the good will increase, causing the supply to fall.
b. the quantity demanded will decrease.
c. the quantity supplied will decrease.
d. the quantity demanded will also increase.
b. the quantity demanded will decrease.
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If the wheat harvest next summer in Canada will be much less than had been expected, there will tend to be
A) a decrease in the price of wheat futures and an increase in the current cash price of wheat in the US. B) a decrease in the price of wheat futures and in the current cash price of wheat in the US. C) an increase in the price of wheat futures and a decrease in the current cash price of wheat in the US. D) an increase in the price of wheat futures and in the current cash price of wheat in the US.
In the classical model with an open economy, an increase in the trade deficit as a result of a tax cut, causes a decline in the interest rate, attracting more loanable funds from abroad
a. True b. False
Money that is deposited in is a part of M1
a. True b. False Indicate whether the statement is true or false
The marginal propensity to consume can be found by dividing
A. Disposable income by total consumption. B. The change in total consumption by the change in disposable income. C. Total consumption by total saving. D. Total consumption by the number of people consuming.