If consumers are willing to pay a higher price than previously for each level of output, we can say that the following has occurred:
A. an increase in supply.
B. a decrease in supply.
C. a decrease in demand.
D. an increase in demand.
Answer: D
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When banks use the money they receive from deposits to make loans, they:
A. decrease the money supply through open market operations. B. increase the money supply through open market operations. C. increase the money supply through the money multiplier. D. decrease the money supply through the money multiplier.
What is meant by the term secularization? How did mortgage-backed securities spread losses during the mortgage default crisis?
What will be an ideal response?
A surplus of shoes will cause
a. a decrease in the supply of shoes b. a decrease in the demand for shoes c. both a decrease in the supply of shoes and an increase in the demand for shoes d. a decrease in the price of shoes, through a shift of either the supply curve or the demand curve e. a decrease in the price of shoes
Suppose the Dow Jones Industrial Average has risen for three days in a row. According to the efficient markets theory of stock prices,
a. it will probably fall again tomorrow b. it will probably rise tomorrow to compensate for recent losses c. it is more likely to rise tomorrow than if it had fallen three days in a row d. it is just as likely to rise again tomorrow as if it had fallen three days in a row e. it will most likely remain unchanged tomorrow