Suppose you place your savings in a time deposit at the bank, and that bank lends some of those funds to a business that desires a loan. This is an example of

Sugar and honey are substitutes goods for many cooking applications. If the price of sugar rises, we would expect the

a. demand for honey to increase b. demand for honey to decrease c. quantity demanded of honey to decrease d. price of honey to decrease e. quantity demanded of honey to increase

Refer to the graph below, which shows a change in the demand for pounds from D to D'. Under a system of fixed exchange rates, the:

A. Price of a pound will increase to $3
B. Price of a dollar will increase to 3 pounds
C. Shortage equal to ab would be met using international monetary reserves
D. Payment deficit will cause changes in price and income levels, which reestablishes the original exchange rate