Consider a demand curve for peaches. Which of the following movements will be observed if the price of peaches decline at a point in time?
a. The demand curve will rotate inward at the given price level.
b. The will be a movement up along the demand curve.
c. The demand curve will rotate outward at the given price level.
d. There will be a downward movement along the demand curve.
e. The demand curve will become steeper.
d
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When the Fed buys securities from a bank, what happens to the monetary base and the quantity of money? Which changes by more or do both change by the same amount?
What will be an ideal response?
The phrase "capital formation" is synonymous with
a. investment spending. b. buying shares of stock. c. creating mutual funds. d. purchasing financial assets.
Nick has a certain amount of money that he wants to invest in a completely risk-free manner. He would most likely: a. deposit it in a bank or credit union
b. invest in a mutual fund. c. purchase shares on the stock market. d. hide the money somewhere in his or her home.
Changes in business inventories will be positive when
A) production exceeds sales. B) production is less than sales. C) a trade surplus exists. D) a budget surplus exists.