Refer to the graph shown. After an increase in supply, the market is in equilibrium where the demand curve intersects S1. In this new equilibrium, consumer surplus is equal to:

If expansionary fiscal policies in theUS lead to increased budget deficits what will happen to real interest rates in the US and the value of the dollar?

a. increase; increase b. increase; decrease c. no change; decrease d. decrease; increase e. decrease; decrease

What three assumptions must hold for the allocation of resources among firms to be efficient?

What will be an ideal response?