Refer to the above figure for a particular good. The rightward shift of the curve could have been caused by
A. an increase in the price of a substitute good.
B. a decrease in the price of that good.
C. an increase in the price of a complementary good.
D. a decrease in the price of an input.
Answer: A
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The increased level of excess reserves that many banks held in 2008 made traditional monetary policy less effective
a. True b. False Indicate whether the statement is true or false
If Fredonia has a closed economy, it ________ with other countries.
A. does not negotiate B. does not trade C. trades D. prevents its citizens from traveling to other countries but trades
In a flexible exchange rate regime, an increase in the expected future exchange rate will cause
A) the IP curve to shift to the left/up. B) the IP curve to shift to the right/down. C) a movement along the IP curve. D) neither a shift nor movement along the IP curve.
Deadweight loss declines in size when a unit of output is produced for which
A. consumer surplus exceeds producer surplus. B. marginal cost exceeds marginal benefit. C. producer surplus exceeds consumer surplus. D. maximum willingness to pay exceeds minimum acceptable price.