If demand and supply both increase
A) the equilibrium quantity definitely will increase and market clearing price definitely will decrease.
B) the equilibrium quantity definitely will increase and market clearing price definitely will increase.
C) the equilibrium quantity definitely will increase but the change in market clearing price cannot be determined without more information.
D) market clearing price definitely will increase but the change in the equilibrium quantity cannot be determined without further information.
C
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Assume that the Fed knows a demand shock has occurred in the economy. It takes the Fed 2 months to adjust policy to the shock, and it takes the economy 14 months for the policy change to affect the economy
The 2 month time period refers to the ________, and the following 14 month time period refers to the ________. A) policy lag; implementation lag B) recognition lag; implementation lag C) implementation lag; impact lag D) policy lag; recognition lag
Over the Fed's history, it has targeted
a. bank reserves. b. the Federal funds rate. c. monetary aggregates. d. inflation. e. all but d.
The unavailability of low-cost insurance contracts decreases the risks of liability for a traffic accident and increases the number of accidents
Indicate whether the statement is true or false
The primary reason people hold money is
a. to keep wealth in a less liquid form. b. to use it as a medium of exchange. c. to use it for investment. d. to earn interest.