During the winter of 1997-1998, the northeastern United States experienced warmer than usual conditions. The price of home heating oil was less than it was during the previous winter, but people bought less home heating oil. This contradicts the Law of Demand
Indicate whether the statement is true or false
False. The statement claiming a contradiction confuses a change in quantity demanded with a change in the demand curve. The law of demand refers to movements along a given demand curve. The mild weather caused a leftward shift of the demand curve.
Economics
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What will be an ideal response?
Economics
If the fractional reserve system did not exist,
a. the banking system could not create money b. the money multiplier would be infinite c. banks would loan out every penny of their deposits d. banks would be highly susceptible to bank runs e. the banking system would realize maximum profit
Economics