What is the effect on the price and quantity of a product if the demand decreases and the supply simultaneously increases?
What will be an ideal response?
The equilibrium price unambiguously falls. The effect on the equilibrium quantity is ambiguous. The equilibrium quantity decreases if the decrease in demand exceeds the increase in supply. The equilibrium quantity increases if the increase in supply exceeds the decrease in demand. The equilibrium quantity is unchanged if the decrease in demand equals the increase in supply.
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If Federal Reserve notes and coins are $765 billion, and banks' reserves at the Fed are $8 billion, the gold stock is $11 billion, and the Fed owns $725 billion of government securities, what does the monetary base equal?
A) $765 billion B) $773 billion C) $776 billion D) $744 billion E) $1,509 billion
The famous historical example of the commitment strategy used by Cortes against the Aztecs is sometimes referred to as:
A. "burning your boats." B. "burning your bridges." C. "friendly fire." D. "putting all your eggs in one basket."
The worker-misperception explanation of the SRAS curve is used to explain why
A) SRAS curves shift to the right B) SRAS curves shift to the left C) the AD curve cannot change the price level if the SRAS curve is operational. D) the SRAS curve slopes downward. E) none of the above
Deregulation in railroads, airlines, and telephone service has generally resulted in higher prices.
Answer the following statement true (T) or false (F)