Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Figure 6.6Refer to Figure 6.6. Bill's budget constraint was originally AD. If his new budget constraint is EF, then his income
A. increased.
B. decreased.
C. increased and the price of black beans price increased.
D. increased and the price of bell peppers decreased.
Answer: D
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The saving rate equals saving divided by:
A. income. B. wealth. C. liabilities. D. assets.
If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then consumer surplus will be
A) $0. B) $8 million. C) $9 million. D) $16 million.
Refer to Table 14-1. Suppose a transaction changes a bank's balance sheet as indicated in the T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank has excess reserves of
A) $0. B) $400. C) $3,600. D) $4,000.
Refer to Figure 18-1. Suppose that the U.S. government deficit causes interest rates in the United States to rise relative to those in the European Union. Assuming all else remains constant, how would this be represented?
A) Supply would decrease, demand would decrease and the economy moves from B to C to D. B) Supply would increase, demand would decrease and the economy moves from C to B to A. C) Demand would decrease and the economy moves from B to A. D) Demand would increase and the economy moves from A to B.