When the price of a good changes, the total effect of the price change on the quantities purchased can be found by comparing the quantities purchased
A) on the old budget line and the new budget line.
B) on the original indifference curve when faced with the original prices and when faced with the new prices.
C) on the new budget line and a hypothetical budget line that is a parallel shift back to the original indifference curve.
D) on the new indifference curve.
A
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The federal funds market is the market for
a. loans from the federal government. b. loans from the Federal Reserve. c. government borrowing and lending. d. interbank lending. e. all of the above.
Which of the following is a normative statement?
A) The Gross Domestic Product is the dollar value of all goods and services produced in a country in a year. B) Fiscal policy is determined by the Congress and the president. C) Tax cuts ought to be enacted for the good of the economy. D) Monetary policy is determined by the Federal Reserve System.