If the tea harvest is bad in a particular year, the supply of tea will
a. decrease, its price will decrease, and the quantity demanded of coffee will increase
b. decrease, its price will increase, and the quantity demanded of coffee will increase
c. decrease, its price will increase, and the quantity demanded of coffee will decrease
d. decrease, its price will decrease, and the quantity demanded of coffee will decrease
e. increase, its price will increase, and the quantity demanded of coffee will increase
C
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When the Fed allows the monetary base to respond to the purchase or sale of domestic currency in the foreign exchange market, the process is called
A) open market operations. B) hedging. C) sterilized intervention. D) unsterilized intervention.
If a consumer is buying three goods A, B, and C, then she will be in equilibrium when total utility from each good is equal
a. True b. False Indicate whether the statement is true or false
Which economic question depends on the incomes that people earn and the prices they pay for goods and services?
A) Why? B) How? C) For whom? D) What? E) Where?
For a ten-year $1,000,000-face-value zero-coupon Treasury bond, how does its market price change when the interest rate goes from 6.84% to 6.92%?
A) A fall of $1192 B) A fall of $3848 C) A fall of $8000 D) A rise of $8000