Suppose there is an increase in the supply of a good. Which of the following statements is true?
A. The closer the demand curve is to being vertical, the larger the decrease in equilibrium price, and the smaller the increase in equilibrium quantity.
B. The closer the demand curve is to being horizontal, the larger the decrease in equilibrium price, and the smaller the increase in equilibrium quantity.
C. The closer the demand curve is to being vertical, the smaller the decrease in equilibrium price, and the larger the increase in equilibrium quantity.
D. The closer the demand curve is to being vertical, the larger the increase in equilibrium price, and the smaller the decrease in equilibrium quantity.
A. The closer the demand curve is to being vertical, the larger the decrease in equilibrium price, and the smaller the increase in equilibrium quantity.
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Suppose China Airlines wants to purchase a French Airbus. The price of the Airbus is 95 million Euro. If the exchange rate is 1 euro per 10 yuan, the price of this airplane to China Airlines is
A) 950 million yuan. B) 10.52 million yuan. C) 10 million yuan. D) 9.5 million yuan.
If investment spending is interest-sensitive and highly unstable, the Federal Reserve could minimize fluctuations in income by targeting
A) velocity. B) the interest rate. C) the money supply. D) government debt.