Refer to Figure 18-1. Italians cut back on smoking and cut their demand for American cigarettes in half. Assuming all else remains constant, this would be represented as a movement from
A) B to A. B) A to D. C) D to C. D) B to C.
A
You might also like to view...
When an economy grows out of a recession, normally the demand for bonds ________ and the supply of bonds ________, everything else held constant
A) increases; increases B) increases; decreases C) decreases; decreases D) decreases; increases
Firm A producing one good acquires another firm B producing another good. The cross price elasticity of demand for the goods owned by each firm is -1.4 . Holding other things constant, the acquiring firm should
a. Raise prices on both goods b. Lower prices on both goods c. Raise price on the acquired good only d. Need more information
The CPI was 220 in 2012 and 231 in 2013 . Phil borrowed money in 2012 and repaid the loan in 2013 . If the nominal interest rate on the loan was 10 percent, then the real interest rate was
a. -5 percent. b. -1 percent. c. 5 percent. d. 3.2 percent.
To create deposits for clients to which it makes loans, a bank typically uses its
A. liabilities. B. required reserves. C. excess reserves. D. federal reserves.