If prices of both horizontal and vertical goods decrease by 50%,
A) budget constraint will be unchanged.
B) slope of the budget constraint will increase.
C) slope of the budget constraint will decrease.
D) budget constraint will shift outward in a parallel fashion.
D
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Firm X owns both tea and coffee plantations. It sells directly to the public. If the firm wants to increase the sales for the coffee, assuming that tea and coffee are substitutes, which of these strategies can it employ?
a. Increase the price for the tea b. Offer free expedited shipping on the coffee c. Advertise the tea more heavily d. Both A&B
The quantity of reserves demanded decreases as the federal funds rate rises because
a. people want more liquid assets as the federal funds rate rises. b. the price of bonds rise as the federal funds rate rises. c. the opportunity cost of holding excess reserves increases as the federal funds rate rises. d. people want more money to invest as the federal funds rate rises.