Which diagram in Figure 9.4 shows what happens to investment as the economy enters a recession, causing both business expectations to collapse and saving to increase further, thus causing banks to lower interest rates?
A. A.
B. B.
C. C.
D. D.
Answer: A
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The demand for a necessity whose cost is a small portion of one's total income is
A. perfectly inelastic. B. relatively inelastic. C. relatively elastic. D. unit-elastic.
The number of brands of identical products will most likely increase as
A) the number of informed consumers increases. B) the cost of producing many brands decreases. C) the number of uninformed consumers decreases. D) None of the above.
You shop at the local drugstore because it is convenient. This situation is best described as:
a. a market with horizontal demand. b. monopolistic competition with differentiation by location. c. differentiation by a cartel. d. differentiation by style or type.
Other things being equal, appreciation of the dollar
A. decreases aggregate demand in the United States, and may decrease aggregate supply by increasing the prices of imported resources. B. increases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources. C. increases aggregate demand in the United States, and may decrease aggregate supply by reducing the prices of imported resources. D. decreases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources.