Distinguish between a change in demand and a change in quantity demanded
What will be an ideal response?
A change in quantity demanded is caused by a change in the price of the good. It is a movement along the demand curve, so that an increase in price leads to a decrease in quantity demanded. A change in demand refers to a shift of the demand curve. The amount demanded changes at every price. Changes in income, population, prices of related goods, tastes and preferences, and expectations about the future cause the demand curve to shift either to the right or to the left.
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The prices of all fixed-income assets (bonds)
A) are independent of the interest rate. B) are determined by the U.S. Treasury. C) vary directly with the interest rate. D) vary inversely with the interest rate.
The value of the U.S. dollar bill is determined by
A) the quantity of gold in Fort Knox. B) the quantity of gold in the Federal Reserve. C) the quantity of gold in circulation. D) the gold futures market. E) none of the above.
Why is indexing not commonly adopted in spite of the fact that it eliminates most of the wealth transfers associated with unexpected inflation?
Voluntary exchange is based on the principle that all parties must gain from trade
a. True b. False Indicate whether the statement is true or false