If consumers suddenly have a greater desire for energy drinks, the price of energy drinks will likely ________ and producers will ________ production
A) increase; decrease
B) increase; increase
C) decrease; decrease
D) decrease; increase
B
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Which of the following appears as a liability on the Federal Reserves balance sheet?
A) U.S. government securities owned outright B) Commercial bank deposits C) Gold certificates D) Cash items in the process of collection
Suppose a monopolist offers a $20 mail-in rebate on an item with a list price of $100. In order for the rebate to be a perfect hurdle, it must be the case that:
A. buyers use the rebate if and only if they have a reservation price between $80 and $100. B. buyers use the rebate if and only if their cost of filling out the rebate is less than $20. C. all buyers with a reservation price greater than $80 use the rebate. D. some buyers with a reservation price greater than $80 use the rebate.
Which of the following will increase the level of human capital in an economy?
A. A decrease in the population. B. An increase in land mass. C. An increase in literacy rates. D. An increase in factory capacity.
Reducing the fed funds rate can increase GDP in the short term because at lower interest rates
A. households will attempt to save more. B. taxes are lower, which increases disposable income. C. Individuals and businesses will want to borrow and spend more. D. banks will earn greater profits on loans.