Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will cause
A) an increase in the demand for coffee.
B) a decrease in the demand for coffee.
C) a leftward shift of the demand curve for tea.
D) a leftward shift in the demand for coffee.
A
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Based on the data in the table above, when Decent Donuts hires eight workers, the
A) average product of labor is greater than the marginal product. B) marginal product of labor is greater than the average product. C) marginal product of labor is equal to the average product. D) marginal product of labor is not defined.
How does the Fed decide which monetary measure should be the focus of its monetary policy choices?
A) The Fed would like to track a monetary measure that is most closely related to the market interest rate. B) The Fed would like to track a monetary measure that is most closely related to the quantity of money demanded by economic agents. C) The Fed would like to track a monetary measure that is most closely related to the level of real GDP and the price level. D) The Fed would like to track a monetary measure that is most closely related to government spending.