A decrease in the price of bubble gum below equilibrium will
A. Shift the bubble gum demand curve to the right.
B. Cause a shortage of bubble gum.
C. Cause a surplus of bubble gum.
D. Shift the bubble gum supply curve to the right.
Answer: B
Economics
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Suppose in the money market the equilibrium nominal interest rate is 5 percent. If the Fed increases the quantity of money, what is the effect on the nominal interest rate?
What will be an ideal response?
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For a monopoly, the value of the next worker equals
A) MR ? MPL. B) (price + the effect of increased output on price) ? MPL. C) P(1 + 1/e) ? MPL D) All of the above.
Economics