Stricter loan standards in the mortgage lending sector could cause
A. a demand shift to the right in the housing market.
B. a supply shift to the right in the housing market.
C. a supply shift to the left in the housing market.
D. a demand shift to the left in the housing market.
Answer: D
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Which of the following is false?
a. Products with close substitutes have elastic demand b. Demand for individual brand is less elastic than industry aggregate demand c. Products with many complements have less elastic demand d. In the long run, demand curves become more elastic
The stock of unused goods held by a firm is called a(n):
a. depreciation. b. supplement. c. deadweight loss. d. excess capacity. e. inventory.
In the long run a company that produces and sells dog beds incurs total costs of $1,200 when output is 30 beds and $1,600 when output is 40 beds. Firm A exhibits
a. diseconomies of scale because total cost is rising as output rises. b. constant returns to scale because average total cost is constant as output rises. c. diseconomies of scale because average total cost is rising as output rises. d. economies of scale because average total cost is falling as output rises.
According to the quantity theory of money, velocity:
A. varies with changes in the growth rate of the money supply. B. varies substantially with changes in the rate of interest and the expected rate of inflation. C. is virtually constant, responding only to changes in the underlying institutional structure. D. is fairly constant, responding only to changes in the expected rate of inflation.