"Less demand causes lower prices, and lower prices cause more demand." The above statement shows
A) economic theory can be used to prove just about anything.
B) everything depends on everything else.
C) prices fluctuate in a free-market situation.
D) the speaker has confused himself by saying demand in the first half of the statement when he meant quantity demanded.
E) the speaker has confused himself by saying demand in the second half of the statement when he meant quantity demanded.
E
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The price paid by a tenant to rent an apartment most closely reflects the cost to the
A) landlord of constructing (or purchasing), maintaining, and operating the apartment. B) landlord of not renting to someone else. C) society of the opportunities thereby forgone. D) tenant of finding an alternative place to live.
All of the following are instruments of fiscal policy except
A) rebate on payroll taxes. B) education tax credits. C) unemployment insurance benefits. D) an interest rate cut.