Figure 3-14
Refer to . The gasoline market was initially in equilibrium at point e. Other things constant, a decrease in the price of crude oil, an important ingredient used to produce gasoline, would likely move the equilibrium in this market toward point
a.
r.
b.
s.
c.
t.
d.
u.
b
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The impact of a change in taxes on income is likely to be less than the effect resulting from a change in government spending since ________
A) the federal government typically operates in a deficit situation B) exports and imports can only assume positive values, but net exports can be positive or negative C) changes in the supply of money will be necessary if government spending is increased D) changes in taxes exert an indirect impact on total spending through changes in consumption
A leftward shift of the demand curve results in: a. increase in equilibrium price
b. increase in quantity. c. decrease in both equilibrium price and quantity. d. decrease in quantity and an indeterminate equilibrium price.
The public assistance program that economists believe can promote economic equality at the least cost in economic efficiency is
a. Aid to Families with Dependent Children (AFDC). b. a negative income tax (NIT). c. food stamps. d. Medicaid.
Consider the following T-account for National City Bank: Assets Liabilities Reserves $10,000 Deposits $100,000 Loans $90,000 If the required reserve ratio is lowered to 8 percent, how much can National City loan out?
A) $10,000 B) $8,000 C) $2,000 D) $0