Which of the following trends is most likely the result of a contractionary monetary policy?
a. The demand for both bungalows and mansions rises.
b. The demand for both economy motels and luxury resorts drops.
c. The demand for ground chuck drops, but the demand for filet mignon rises.
d. The demand for designer dresses rises, but the demand for inexpensive dresses drops.
b. The demand for both economy motels and luxury resorts drops.
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The equilibrium quantity in a perfectly competitive market is determined:
A) at the point of intersection of the demand curve and the quantity axis. B) at the point of intersection of the demand and supply curves. C) at the point of intersection of the supply curve and the quantity axis. D) at the point of tangency between the demand and supply curves.
Compared to a cost plus incentive fee contract, the cost plus percentage fee contract has strong incentives to minimize costs
a. True b. False
Refer to Figure 9.6. Before this policy was implemented, consumer surplus was
A) $20. B) $4000. C) $6000. D) $8000. E) $12000.
Which of the following will NOT cause market supply to increase?
A) an increase in the number of firms supplying the product in the market B) a change in technology which allows a larger level of production at every price C) an increase in the costs of resources used to produce the product D) a decrease in labor costs