If consumers switch away from eating margarine at the same time that the number of margarine suppliers increases, then
a. these two effects cancel each other out and there is no change in the margarine market equilibrium
b. the demand curve shifts left and the supply curve shifts right
c. there is a margarine price increase
d. there is an excess demand for margarine
e. the equilibrium quantity of margarine must increase
B
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A clause in a debt contract requiring that the borrower purchase insurance against loss of the asset financed with the loan is called a
A) collateral-insurance clause. B) prescription covenant. C) restrictive covenant. D) proscription covenant.
If the price index is now 120, it means:
a. prices are 120 percent higher than in the base year. b. prices are 20 percent higher than in the base year. c. prices are 1.2 percent higher than in the base year. d. nominal GDP will be less than real GDP.