Which of the following would cause movement downward along the demand curve for a normal good, leading to an increase in quantity demanded?
a. A decrease in the price of a substitute good
b. An increase in the price of a complementary good
c. A decline in the price of the good
d. Consumer expectations that the good will become more expensive in the near future
c
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Other things equal, along the aggregate demand curve, a higher price level is associated with
A) an increase in the quantity of real GDP demanded. B) a decrease in the quantity of real GDP demanded. C) a decrease in the quantity of nominal GDP demanded. D) higher income levels.
The exogenous variable in the monetary policy curve is ________
A) the policy parameter, ? B) the real interest rate C) the autonomous component, D) the federal funds rate E) the inflation rate
In a problem involving exchange, the contract curve shows
A) all exchanges that make both parties better off. B) the one exchange that makes both parties better off. C) all possible allocations of goods between both parties. D) all possible efficient allocations between both parties.
When the Fed buys government bonds on the open market from commercial banks, the
a. assets of these banks fall b. assets of the Fed falls c. assets of the banks rise d. liabilities of the bank rise e. liabilities of the bank fall