If the demand for good A is more elastic than the demand for good B, a small decrease in supply in both markets will cause
a. a much greater increase in price for good A than for good B
b. a much greater increase in price for good B than for good A
c. the price will increase by the same amount in both markets
d. only the price of good B will increase
e. only the price of good A will increase
B
Economics
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If the Fed lowers the interest rate in the U.S., ________
A) the U.S. net exports will decrease B) the demand curve for dollars will shift to the left C) the demand curve for dollars will shift to the right D) the real exchange rate of the U.S. will appreciate
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An automatic stabilizer tends to increase GDP when it is rising.
a. true b. false
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