Holding supply constant, an decrease in demand leads to
A. lower prices and higher quantity supplied.
B. lower prices and lower quantity supplied.
C. higher prices and lower quantity supplied.
D. higher prices and higher quantity supplied.
Answer: B
You might also like to view...
Which of the following happened during the recession of 2007-2009?
A) Housing prices rose. B) Unemployment increased. C) Consumption increased. D) Food prices rose.
Sequential games are used to analyze
A) second-price auctions. B) cartels. C) situations in which one firm acts and other firms respond. D) firms that are subject to the prisoner's dilemma.
Term premium refers to
A) the average difference over a long period of the interest rate on long-term bonds and the interest rate on the short-term federal funds rate. B) the average difference over a long period of the interest rate on short-term financial instruments and the interest rate on the discount rate. C) the difference between the corporate bond rate and the risk-free rate of Treasury bonds. D) the difference between prime rate and the discount rate.
At the equilibrium level of real GDP, total production equals total:
a. saving. b. investment. c. net exports. d. spending.