When the demand for grapes decreases and the supply of grapes increases at the same time, we can predict that the:
a. price of grapes will fall
b. price of grapes will rise.
c. quantity of grapes exchanged will fall.
d. quantity of grapes exchanged will rise.
a
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Setting a price support in the market for sugar beets above equilibrium price ________ the quantity produced and ________ the quantity bought by consumers
A) decreases; decreases B) increases; decreases C) decreases; increases D) increases; increases E) does not change; increases
Explain and demonstrate graphically how targeting the federal funds rate can result in fluctuations in nonborrowed reserves
What will be an ideal response?
Assume the Expectation Hypothesis regarding the term structure of interest rates is correct. Then, if the current one-year interest rate is 4% and the two-year interest rate is 6%, then investors are expecting the future one-year rate to be:
A. 8%. B. 6%. C. 5%. D. 4%.
Which of the following will occur if the supply curve for gasoline shifts to the left?
A. Nothing will happen to the quantity of gasoline used because people are addicted to gasoline. B. The demand for gasoline will shift to the left as people demand less gasoline. C. The price of gasoline will fall, and the quantity demanded will rise. D. The price of gasoline will rise, and the quantity demanded will fall.