Suppose in a democratic society, all voters prefer choice G over choice B; however, when the two choices are presented along with a third choice, R, B wins the election. This violates the assumption of

A decrease in the price of driver liability insurance will ________ the ________ for new automobiles

A) decrease; demand B) increase; demand C) decrease; supply D) increase; supply E) None of the above is correct.

How does conventional monetary policy work in the short run?

A. Fed sets target FFR, open market operations, bank reserves and money supply changes, market FFR and other short run interest rates change, consumption changes, and AD changes B. fed prints money, inflation increases, money loses value