The tendency for consumers to purchase more of a good or service as its price falls is captured by:
A. the law of supply.
B. the law of increasing cost.
C. the law of demand.
D. cross-price elasticity of demand.
Answer: C
You might also like to view...
The current price of a stock increases when:
A. interest rates decrease. B. expected future dividends decrease. C. the expected future price of the stock decreases. D. the perceived riskiness of the stock increases.
Let Kj and Lj denote the capital and labor stocks of country j (j = A,B), then country A is said to be capital abundant relative to country B if
A) KA > KB. B) KA/LA > KB/LB. C) LA < LB. D) All of the above.
Everything else held constant, in the market for reserves, when the supply for federal funds intersects the reserve demand curve along the horizontal section of the demand curve, lowering the interest rate paid on excess reserves
A) increases the federal funds rate. B) lowers the federal funds rate. C) has no effect on the federal funds rate. D) has an indeterminate effect of the federal funds rate.
Unemployment will decrease over time if:
a. actual GDP increases faster than potential GDP. b. actual GDP increases at the same rate as potential GDP. c. acutal GDP remains the same but potential GDP increases. d. actual GDP increases at a less than proportionate rate than potential GDP. e. actual GDP decreases but potential GDP increases.