You notice that the price of orange juice at your local grocery store has increased. Which of the following statements is not a possible explanation for the rise in the price of orange juice?
a. Frosty weather destroys oranges causing the price of oranges to increase
b. As a result of an increase in income, consumers wish to purchase more orange juice at every price level.
c. A recent scientific study is reported in the press that suggests that apple juice may be contaminated with pesticides.
d. Due to the bioengineering of orange trees, the domestic supply of oranges increases.
d
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The bank lending channel
A) emphasizes the role of interest rates in the money supply process. B) emphasizes the importance of borrowers' net worth to the decision of lenders to grant loans. C) emphasizes the behavior of bank-dependent borrowers. D) is another name for the interest rate channel.
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Indicate whether the statement is true or false
The actual rate of unemployment will generally
a. increase as an economy enters a recession. b. decrease as an economy enters a recession. c. fall below the natural rate of unemployment during a recession. d. do both a and c.
In graph a, why does q1 move to q2?
a. When firms leave the market, the demand increases for the firms remaining, causing quantity to increase for each firm.
b. When firms leave the market, the price decreases for the firms remaining, causing quantity to increase for each firm.
c. When firms leave the market, the demand decreases for the firms remaining, causing quantity to decrease for each frim.
d. When firms leave the market, the price increases for the firms remaining, causing quantity to decrease for each firm.