An increase in income causes the demand for inferior goods to_____________ and the price of inferior goods to ____________
a. Increase; increase
b. Increase; decrease
c. Decrease; increase
d. Decrease, decrease
d
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What effect does a contractionary monetary policy in the U.S. have on the foreign trade sector?
A) The higher value of the dollar will decrease imports and increase exports. B) The higher value of the dollar will decrease exports and increase imports. C) The lower value of the dollar will decrease imports and increase exports. D) The lower value of the dollar will decrease exports and increase imports.
Refer to Figure 14-3. How will Rainbow Writer respond to Odeon's two possible offers?
A) Rainbow Writer will accept either offer. B) Rainbow Writer will reject either offer. C) Rainbow Writer will only accept an offer of $30 per copy of the software package. D) Rainbow Writer will only accept an offer of $40 per copy of the software package.