Other things being equal, what is the effect of deficit spending on credit markets?
A) The supply of credit will increase while the demand for credit remains the same.
B) The demand for credit increases while the supply of credit remains constant.
C) Both the demand for credit and the supply of credit will decrease.
D) Both the demand for credit and the supply of credit will increase.
B
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Which of the following represents ownership of a firm?
A) commodities B) stocks C) bonds D) loans E) short-term securities
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D2 and S2 (point E)
If the technology to produce motorcycles improves and the number of buyers increases, how will the equilibrium point change? A) The equilibrium point will move from E to C. B) The equilibrium point will remain at E. C) The equilibrium point will move from E to B. D) The equilibrium point will move from E to A.