A decrease in supply will cause the largest increase in price when
a. both supply and demand are inelastic.
b. both supply and demand are elastic.
c. demand is elastic and supply is inelastic.
d. demand is inelastic and supply is elastic.
a
Economics
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If inflation in the United States is higher than inflation in other countries, what will be the effect on net exports for the United States?
A) Net exports will decrease as U.S. imports decrease. B) Net exports will rise as U.S. imports decrease. C) Net exports will rise as U.S. exports increase. D) Net exports will decrease as U.S. exports decrease.
Economics
When the economy is in the liquidity trap, the
A) LM curve is horizontal. B) LM curve is vertical. C) IS curve is horizontal. D) IS curve is vertical.
Economics