Which of the following will shift today's supply curve to the right?
A) Input prices rise.
B) Sales taxes increase.
C) Prices are expected to be higher in the future.
D) Prices are expected to be lower in the future.
Answer: D
You might also like to view...
If the banking sector borrows internationally and lends locally, how does this intensify a financial crisis?
What will be an ideal response?
When the economy is at full employment,
a. people are not inclined to borrow so the banking system is unlikely to loan out themaximum allowable b. firms are inclined to borrow to finance investment so the banking system is likely to end up with little and possibly no excess reserves c. firms are disinclined to borrow because investment opportunities are fewer in full employment so the banking system has considerable excess reserves d. bankers become more hesitant to lend money because they are not very confident in the future e. inflation is high, which undermines people's willingness to borrow so the banking system must lower the interest rate to induce borrowing