The substitution effect that occurs when interest rates change involves a change in consumption that develops from ________
A) a change in the general level of prices
B) a period of increasing productivity
C) a change in the level of income
D) a change in the relative prices of consumption in the two periods
D
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The primary goal of the European Central Bank is
A) price stability. B) exchange rate stability. C) interest rate stability. D) high employment.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. producer surplus rises by area B, but falls by area E.
B. producer surplus rises by area B, but falls by area D + E.
C. producer surplus rises by area B + C, but falls by area D + E.
D. producer surplus rises by area B + C, but falls by area E.
When the court determines that a firm's size alone is sufficient to find that it violated antitrust laws, this criterion is called
a. countervailing power b. economies of scale c. per se d. rule of reason e. natural monopoly
A market basket:
A. is a tool devised to track how changing prices affect consumers. B. includes all the goods and services consumed in an economy, including imports. C. includes all the goods and services produced in an economy. D. includes all the goods and services consumed in an economy, including net exports.