Which or the following events would unambiguously cause a decrease in the equilibrium price cotton shirts?
A) An increase in the price of wool shirts and a decrease in the price of raw cotton.
B) A decrease in the price of wool shirts and a decrease in the price of raw cotton.
C) An increase in the price of wool shirts and an increase in the price of raw cotton.
D) A decrease in the price of wool shirts and an increase in the price of raw cotton.
Answer: B) A decrease in the price of wool shirts and a decrease in the price of raw cotton.
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How does an increase in the short-term interest rate affect peoples' desire to hold real money balances?
A) People will hold more money to compensate for the higher interest rate. B) People will hold more money in anticipation of higher inflation. C) People will hold less money since they would be sacrificing more interest by holding money. D) People will hold less money since it is not worth as much.
The poverty rate for those over age 65 exceeds the rate for those under 18
Indicate whether the statement is true or false
Refer to the above figure. Which arrows represent items that are measured in dollar terms?
A. Arrows A and B B. Arrows C and D C. Arrows A and D D. Arrows B and C
Over the last decade, foreigners have been exercising
A. a declining influence over interest rates in the United States. B. an increasing influence over interest rates in the United States. C. about the same influence over interest rates in the United States.