If there is an expectation that the price of a good will increase in the next month, this would immediately
A. move its supply curve to the left.
B. move its supply curve to the right.
C. cause a movement along the supply curve to a (higher price, higher quantity) point.
D. cause a movement along the supply curve to a (lower price, lower quantity) point.
Answer: A
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If the supply of dollars in the market for foreign-currency exchange shifts left, then the exchange rate
a. rises and the quantity of dollars exchanged falls. b. rises and the quantity of dollars exchanged does not change. c. rises and the quantity of dollars exchanged rises. d. falls and the quantity of dollars exchanged does not change.
The most important tool of monetary policy is:
A. the discount rate. B. open-market operations. C. market interest rates. D. reserve requirement ratios.
A U.S. firm that buys ______ goods must sell its ______ to pay for those goods.
a. Chinese; Chinese currency to obtain U.S. dollars b. Mexican; U.S. dollars to obtain Chinese currency c. Chinese; U.S. dollars to obtain Chinese currency d. Mexican; Chinese currency to obtain U.S. dollars
According to most economists, the development of markets is:
A. both a necessary and a sufficient condition for development. B. a sufficient condition for development but not a necessary condition. C. a necessary condition for development but not a sufficient condition. D. neither a necessary nor a sufficient condition for development.