An increase in the demand for bonds generates
A) an increase in both the interest rate and the exchange rate.
B) a decrease in both the interest rate and the exchange rate.
C) an increase in the interest rate and a decrease in the exchange rate.
D) a decrease in the interest rate and an increase in the exchange rate.
Ans: B) a decrease in both the interest rate and the exchange rate.
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A demand curve can be interpreted as
A) a marginal benefit curve. B) a total benefit curve. C) an average benefit curve. D) a marginal cost curve. E) None of the above answers is correct.
A binding price ceiling that could be set in the market in the graph shown would be:
A. $15.
B. $11.
C. $8.
D. $30.
Monopolistically competitive firms use product differentiation to increase the price elasticity of demand
a. True b. False
Imagine a budget line depicting a consumer's possible allocation of a given income between fruit and vegetables. If the consumer's income increases at the same time the price of vegetables rises, the budget line's intercept with the
a. fruit axis will be unaffected b. fruit axis will move toward the origin c. vegetable axis will be unaffected d. fruit axis will move toward the origin e. vegetable axis might remain unchanged, move toward the origin, or move away from the origin