Suppose that consumers expect that the price of a product will increase in the future. The result is that:
A. the current demand for the product increases.
B. the current demand for the product decreases.
C. the current supply of the product increases.
D. the current supply of the product decreases.
Answer: A
Economics
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Refer to Table 14-1. Suppose a transaction changes a bank's balance sheet as indicated in the T-account, and the required reserve ratio is 10 percent. As a result of the transaction, the bank has excess reserves of
A) $0. B) $400. C) $3,600. D) $4,000.
Economics
The misperceptions theory was originally proposed by ________ and rigorously formulated by ________
A) Milton Friedman; Robert Lucas B) John Maynard Keynes; Robert Solow C) Edward Prescott; Robert King D) James Tobin; Greg Mankiw
Economics