Law of demand
What will be an ideal response?
There is an inverse relationship between price and quantity demanded
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In an attempt to bring lenders and borrowers together following the financial crisis of 2008, the Federal Reserve made a large amount of new funds available to financial markets
The Fed expected this to increase the money supply and the total amount of lending because of the multiplier effect, in which a given amount of new reserves results in a multiple increase in A) long-term debt. B) stockholders' equity. C) bank deposits. D) required reserves.
Which of the following is true of investment spending in the U.S. economy?
a. Investment spending in 2009 was higher than in 2006. b. Investment spending was almost double of household spending. c. Businesses had reduced expenditures on capital goods in 2008 and 2009. d. Investment spending exhibited a more or less steady increase between 1959 and 2009. e. Investment spending fluctuated relatively less than consumption.
At the output level corresponding to the efficient quantity of a good,
a. the value of the last unit can be negative for some consumer b. the value of the last unit to some consumer equals the minimum price some seller must receive for producing it c. the distribution of the good is fair d. the minimum price some consumer must pay for the last unit equals the value of the unit to some producer e. the price is the lowest that a typical firm would ever be willing to accept
If total utility increases when you consume more of a good, then marginal utility must also be increasing as consumption rises.
a. true b. false