A positive spending shock ________ real interest rates and ________ output in the short run, thereby its effect on stock prices is ________

A) raises; lowers; positive
B) raises; raises; ambiguous
C) lowers; raises; negative
D) lowers; raises; positive

B

Economics

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Refer to Figure 3-1. If the product represented is an inferior good, a decrease in income would be represented by a movement from

A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.

Economics

Which of the following market structures describes an industry in which a group of firms formally agree to control prices and output of a product?

a. Perfect competition. b. Monopoly. c. Oligopoly. d. Cartel. e. Monopolistic competition.

Economics