If the demand for CD players decreases and the supply of CD players decreases, then
A) it is clear that prices will decrease, the change in the quantity of CD players sold is ambiguous.
B) it is clear that prices will increase, the change in the quantity of CD players sold is ambiguous.
C) it is clear that quantity sold will decrease, the change in the price of CD players is ambiguous.
D) it is clear that change in quantity sold is ambiguous, the change in the price of CD players is ambiguous.
C
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A fixed exchange rate causes:
A) transaction costs to increase. B) efficiency to increase only if the economies are integrated. C) efficiency to increase under all circumstances. D) volume of trade to decline.
If a bank has actual reserves of $40,000 and a 20 percent reserve requirement, then the maximum amount of checkable deposits the bank can have if excess reserves are zero is:
a. $100,000. b. $80,000. c. $300,000. d. $20,000. e. $200,000.