According to the law of demand, only the price of a good influences the amount people will choose to purchase.
Answer the following statement true (T) or false (F)
False
When stating the law of demand, it is necessary to assume other things constant. However, this does not imply that other things do not influence demand.
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In May 1991, the FDIC announced that it would sell the government's final 26% stake in Continental Illinois, ending government ownership of the bank that it had rescued in 1984
The FDIC took control of the bank, rather than liquidate it, because it believed that Continental Illinois A) was a good investment opportunity for the government. B) could be the Chicago branch of a new governmentally-owned interstate banking system. C) was too big to fail. D) would become the center of the new midwest region central bank system.
Other things being equal, the behavior of a monopolist differs from that of a competitive industry in that
A) the monopolist does not attempt to maximize economic profit. B) the monopolist hires more labor. C) the monopolist restricts output and hires less labor. D) the monopolist must consider fixed costs in deciding the optimal level of output to produce in the short run.
Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: A sudden, unexpected surge in inflation in the United States causes reduced purchases of U.S. goods by foreigners.
A. a. B. b. C. c. D. d.
According to Keynes, what is the most important determinant of households' spending on goods and services?
A. the price level B. the interest rate C. autonomous consumption D. disposable income