How will a decrease in price tend to affect supply?
a. Supply will increase

Consumers have to make tradeoffs in deciding what to consume because

A) there are not enough of all goods produced. B) the prices of goods vary. C) not all goods give them the same amount of satisfaction. D) they are limited by a budget constraint.

If a banker expects interest rates to fall in the future, her best strategy for the present is

A) to increase the duration of the bank's liabilities. B) to buy short-term bonds. C) to sell long-term certificates of deposit. D) to increase the duration of the bank's assets.