A headline reads "Lumber Prices Up Sharply." In a competitive market, this situation would lead to a(n):
A. Increase in the price and quantity of new homes
B. Decrease in the price and quantity of new homes
C. Increase in the price of new homes and decrease in quantity
D. Decrease in the price of new homes and increase in quantity
Answer: C
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A city street is
a. always a public good, whether or not it is congested. b. a public good when it is congested, but it is a common resource when it is not congested. c. a common resource when it is congested, but it is a public good when it is not congested. d. always a common resource, whether or not it is congested.
Decisions regarding purchases and sales of government securities by the Fed are made by the:
a. Discount Committee (DC). b. Federal Open Market Committee (FOMC). c. Federal Funds Committee (FFC). d. Federal Deposit Insurance Commission (FDIC).