Prices of related goods are a determinant of demand but not supply
Indicate whether the statement is true or false
FALSE
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In the Solow model, if productivity doesn't change,
A) the economy must eventually reach a steady state. B) the capital—labor ratio must decline. C) the capital—labor ratio must rise. D) there can be no saving.
When macroeconomists refers to "full employment," what do they mean?
A. Full employment occurs when the unemployment rate equals zero. B. Full employment occurs when there is only cyclical unemployment, and all other types of unemployment have been eliminated. C. Full employment occurs when there is only structural unemployment, and all other types of unemployment have been eliminated. D. Full employment occurs when there is only frictional unemployment; structural and cyclical unemployment has been eliminated.
Fixed exchange rates are fixed by
A. international speculators who manipulate the world’s currencies. B. international demand and supply. C. national governments. D. All of the above are correct.
When the Federal Reserve decreases the money supply, at the previous equilibrium interest rate households and firms will now want to
A) buy Treasury bills. B) sell Treasury bills. C) neither buy nor sell Treasury bills. D) hold less money.