"Supply creates its own demand" implies that
A. the very act of supplying a particular level of goods and services will not necessarily equal the level of goods and services demanded.
B. the government will buy up any surplus of goods and services in a country to avoid economic problems.
C. the very act of demanding a particular level of goods and services necessarily equals the level of goods and services supplied.
D. the very act of supplying a particular level of goods and services necessarily equals the level of goods and services demanded.
Answer: D
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If the Fed wants to raise the interest rate, in the short run in the money market the Fed
A) increases the quantity of money. B) shifts the demand for money curve leftward. C) shifts the demand for money curve rightward. D) decreases the quantity of money. E) directly raises the interest rate and does nothing to either the supply of money or the demand for money.
When quantity is measured in gallons, the price elasticity of demand for milk will be __________ the price elasticity when quantity is measured in quarts
a. the same as b. four times c. one quarter d. two times e. less than
If a sizeable amount of U.S. currency is held outside of the United States,
a. the accuracy of the M2 money supply figures will be improved, but there will be no impact on M1. b. the accuracy of the M1 money supply figures will be improved, but there will be no impact on M2. c. the money supply figures, particularly those for M1, will be less reliable. d. the money supply figures of the U.S. will not be affected because the funds are held outside the U.S.
In the long run, AS is vertical.
a. true b. false