We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will increase when
A) supply increases and demand decreases.
B) supply and demand for a product simultaneously decrease.
C) supply and demand for a product simultaneously increase.
D) supply decreases and demand increases.
Answer: C
Economics
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If the United States has a current account deficit and the capital account is zero, which of the following must be true?
A) The balance on the financial account must equal the balance on the current account. B) Domestic public saving must be less than net foreign investment. C) Net foreign investment must be negative as well. D) Domestic private saving must be less than net foreign investment.
Economics
The aggregate demand curve identifies the level of aggregate production corresponding to a change in the price level
a. True b. False
Economics