If the interest rate on treasury bills is higher than the monetary policy rate, the quantity of overnight loans supplied ______ and the _______ for treasury bills increases.
A. Decreases; demand
B. Decreases; supply
C. Increases; demand
D. Increases; supply
C. Increases; demand
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Suppose there are 5 million unemployed workers seeking jobs. After a period of time, 1 million of them become discouraged over their job prospects and cease to look for work. As a result of this, all else equal, the official unemployment rate would
A. be unchanged. B. increase in the short run but eventually decline. C. increase. D. decline.
Refer to Figure 6-8. Identify the two goods which are substitutes
A) Good X and Good Z B) Good Y and Good Z C) Good X and Good Y D) It is not possible to distinguish any relationship among the goods.
Holding all other factors constant and using the midpoint method, if a candy manufacturer increases production by 20 percent when the market price of candy increases from $0.50 to $0.60, then supply is
a. inelastic, since the price elasticity of supply is equal to .91. b. inelastic, since the price elasticity of supply is equal to 1.1. c. elastic, since the price elasticity of supply is equal to 0.91. d. elastic, since the price elasticity of supply is equal to 1.1.
Which of the following is included in the aggregate demand for goods and services?
a. consumption demand b. investment demand c. net exports d. All of the above are correct.