Assume that the demand for apples is downward sloping. If the price of apples falls from $.80 per pound to $.65 per pound, which of the following will occur?

Which of the following is an example of an automatic stabilizer during a recession?

A) A decrease in tax revenue due to an increase in unemployment B) An increase in money supply due to a decrease in bank deposits C) An increase in interest rates due to a decrease in investment D) A decrease in inflation due to an increase in consumption

Suppose that the U.S. exchange rate is expected to fall in the future. As a result, in the foreign exchange market, there will be

A) an increase in the demand for dollars, a decrease in the supply of dollars, and a rise in the equilibrium exchange rate. B) an increase in the demand for dollars, a decrease in the supply of dollars, and a fall in the equilibrium exchange rate. C) a decrease in the demand for dollars, an increase in the supply of dollars, and a rise in the equilibrium exchange rate. D) a decrease in the demand for dollars, an increase in the supply of dollars, and a fall in the equilibrium exchange rate.