People will buy more of an inferior good when their income decreases.
Answer the following statement true (T) or false (F)
True
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Illustrate the effect of an open market sale of $20 million worth of Treasury bills on the Fed's balance sheet
What will be an ideal response?
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.
Suppose real GDP is $13 trillion, potential real GDP is $13.5 trillion, and Congress and the president plan to use fiscal policy to restore the economy to potential real GDP
Assuming a constant price level, Congress and the president would need to increase government purchases by A) less than $500 billion. B) $500 billion. C) more than $500 billion. D) None of the above are correct. Congress must act to decrease government purchases in this case.
Which of the following is true of the relationship between price and quantity supplied? a. Whatever the price level, quantity supplied is equal to quantity demanded. b. More is supplied at lower prices. c. As the price rises, consumers are willing to purchase more of the good supplied. d. Except for market-day supply, an increase in price generates an increase in quantity supplied
e. An increase in price leads to a decrease in quantity supplied.