In the natural gas industry, recent technological improvements and the use of fracking have
a. increased the demand for natural gas, causing its price to rise.
b. increased the supply of natural gas, causing its price to decline.
c. reduced the demand for natural gas even though the proved reserves of the resource have fallen.
d. resulted in sharply higher natural gas prices because of the dangers that accompany fracking.
B
You might also like to view...
Give an example of a monetary policy target. Explain why the Fed uses policy targets
What will be an ideal response?
Which of the following statements about monetary policy is correct?
a. Whatever happens with aggregate supply and aggregate demand in the long run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the short and medium term. b. Whatever happens with aggregate supply and aggregate demand in the short run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the medium and long term. c. Whatever happens with aggregate supply and aggregate demand in the short and medium run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the long term. d. Whatever happens with aggregate supply and aggregate demand in the medium and long run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the short term.
In Monetarist theory, the role of the government should be to:
a. Use fiscal policies to ensure that aggregate demand is sufficient to meet aggregate supply. b. Control prices. c. Seek to raise productivity by setting up and enforcing fair rules of behavior, encouraging competitive markets, imposing reasonable taxes, and creating stable and predictable political environments. d. All of the above. e. None of the above.
The price paid by buyers in a market will decrease if the government
a. increases a binding price floor in that market. b. increases a binding price ceiling in that market. c. decreases a tax on the good sold in that market. d. All of the above are correct.