When the price of almonds falls:
A. the demand for almonds decreases, ceteris paribus.
B. the demand for almonds increases, ceteris paribus.
C. the quantity of almonds demanded decreases, ceteris paribus.
D. the quantity of almonds demanded increases, ceteris paribus.
Answer: D
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Voluntary exchanges between ____________ generates surplus.
A. firms B. countries C. individuals D. All of these are true.
Banks will hold additional excess reserves when
a. loans to customers look safe and interest rates are high. b. they anticipate a bank audit. c. loans to customers look risky and interest rates are low. d. the economy is booming and there is a large demand for loans.
What is the purpose of the government granting monopoly power to a company by issuing a patent?
a. The government is opposed to competition and for a fee will prevent other suppliers from bring other new products to the market. b. The company is provided an opportunity to try profit from their research investment without competition from other suppliers for the same product. c. The company is being rewarded for making a better product than anyone else.
Which cause-and-effect chain would best explain the reason for a crowding-out effect? An expansionary fiscal policy:
A. decreases interest rates that decrease private investment spending. B. increases interest rates that decrease private investment spending. C. increases interest rates that increase private investment spending. D. decreases interest rates that increase private investment spending.