1/ "Demand" is best defined as the relationship between:

Group of answer choices

a/ the price of a good and the quantity consumers are willing and able to buy at each price level.

b/ the current price of a good and the quantity demanded at that price.

c/ the quantity supplied and the price people are willing to pay for a good.

d/ the amount of income someone has and the price he is willing to pay for a good.

3/ Many people consider hot dogs to be an inferior good. For such people, all else held constant, a decrease in income would cause their demand for hot dogs to:

Group of answer choices

a/ increase.

b/ stay the same.

c/ decrease.

d/ cannot be determined with the information given.

4/ If movies on DVD for home rental and movies seen at a theater are substitutes, and the price of movies seen at a theater increases, the demand for movies on DVD will:

Group of answer choices

a/ increase.

b/ stay the same.

c/ decrease.

d/ cannot be determined.

5/ Which of the following is not considered a factor that influences supply?

Group of answer choices

a/ Technology.

b/ Production taxes and subsidies.

c/ The number of buyers.

d/ Resource prices.

6/ For the U.S. economy, the largest expenditure category is:

Group of answer choices

a/ government expenditures.

b/ net export expenditures.

c/ personal consumption expenditures.

d/ investment expenditures.

7/ Greater consumer confidence, wealth, available consumer credit, and disposable income ________ personal consumption expenditures.

Group of answer choices

a/ increase

b/ decrease

c/ have no effect on

d/ none of the above

8/ Higher expected profits and business confidence ________ investment spending.

Group of answer choices

a/ decrease

b/ increase

c/ do not affect

d/ none of the above.

9/ Appreciation of the U.S. dollar will ________ exports and ________ imports, other things equal.

Group of answer choices

a/ increase; increase

b/ increase; decrease

c/ decrease; decrease

d/ decrease; increase

10/ The reserve requirement is 0.20. What is the simple deposit multiplier?

Group of answer choices

a/ 1

b/ 5

c/ 0.10

d/ 100

11/ The interest rate that commercial banks charge each other for loans of reserves to meet their minimum reserve requirements is called:

Group of answer choices

a/ treasury bill rate.

b/ federal funds rate.

c/ prime interest rate.

d/ none of the above.