An increase in the interest rate will:
a. increase the amount of money supplied by lenders
b. decrease the amount of money supplied by lenders.
c. have no effect on the amount of money supplied by lenders.
d. have an ambiguous effect on the amount of money supplied by lenders.
a
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Which of the following will cause a movement along the demand curve instead of a shift of the demand curve?
A) income B) tastes and preferences C) Expectations e the future price of a good D) none of the above
A cold spell in Florida extensively reduced the orange crop, and as a result, California oranges commanded a higher price. Which of the following statements best explains the situation?
a. The supply of Florida oranges fell, causing the supply of California oranges to increase as well as their price. b. The supply of Florida oranges fell, causing the supply of California oranges to decrease and their price to increase. c. The supply of Florida oranges fell, causing their price to increase and the demand for California oranges to increase. d. The demand for Florida oranges was reduced by the freeze, causing an increase in the price of California oranges and a greater demand for them.