Author Question: If supply decreases and demand increases A) the market clearing price definitely rises, and the ... (Read 115 times)

nenivikky · **on:** Jun 29, 2018

If supply decreases and demand increases

A) the market clearing price definitely rises, and the equilibrium quantity falls.
B) the market clearing price definitely rises, and the equilibrium quantity is indeterminate.
C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.
D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls.

Question 2

If the public debt increased by the same amount each year during the past three years, then

A) the U.S. government must have operated with the same budget surpluses during the past three years.
B) the U.S. government must have experienced budget surpluses that increased by the same amount each of the past three years.
C) the U.S. Treasury must have issued securities to fund a flow of government spending that exceeded a flow of tax revenues by the same amount during each of the past three years.
D) during each of the past three years, the U.S. Treasury must have bought back the same amount of securities that had previously been issued to cover deficits experienced more than three years ago.