Refer to the information provided in Figure 25.1 below to answer the question(s) that follow.
Figure 25.1Refer to Figure 25.1. A movement from Point D to Point E can be caused by
A. a decrease in nominal income.
B. a decrease in the interest rate.
C. an increase in the interest rate.
D. an increase in nominal income.
Answer: A
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The figure above shows the market for coffee. If one firm owns all the coffee outlets and sells 10 million pounds of coffee a month, the deadweight loss is
A) zero. B) $7.5 million. C) $15 million. D) $10 million
Which of the following is the mandate of the European Central Bank?
A) high economic growth B) price stability C) low unemployment D) a fixed exchange rate
The Federal Reserve System is divided into how many districts?
A) 1 B) 5 C) 7 D) 12
You can spend $10 for lunch and you would like to purchase two cheeseburgers. When you get to the restaurant, you find out the price for cheeseburger has increased from $5 to $6, so you decide to purchase just one cheeseburger. This is best described as:
A. an increase in the buyer's reservation price. B. a decrease in the buyer's reservation price. C. the substitution effect of a price change. D. the income effect of a price change.