If the U.S. government's borrowing needs increase, in the bond market this would be seen as:
A. the bond demand curve shifting right.
B. the bond supply curve shifting right.
C. a movement up the bond supply curve.
D. the bond demand curve shifting left.
Answer: B
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The circular flow diagram shows only the aggregate expenditures measure of GDP
Indicate whether the statement is true or false
If a government tax has as its purpose the raising of revenue, it would be best to place the tax on a product which:
a. is a non-essential. b. has a highly elastic demand. c. has many good substitutes. d. has a highly inelastic demand. e. has a unit elastic demand curve.
Suppose that monopolistically competitive firms in a certain market are experiencing losses. In the transition from this initial situation to a long-run equilibrium,
a. the number of firms in the market decreases. b. each existing firm experiences a decrease in demand for its product. c. each firm experiences an upward shift of its marginal cost and average total cost curves. d. each existing firm's average total cost falls to bring economic profit back to zero.
Recall the Application about the price competition between satellite and cable TV services to answer the following question(s).Recall the Application. In most cases where satellite TV service is introduced in an area with cable TV service, the quality of the cable TV service usually:
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