If both market demand and supply increase simultaneously, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
a. indeterminate; decrease
b. increase; increase
c. increase; indeterminate
d. decrease; decrease
Question 2
Which of the following is true?
a. The fraction of their total disposable income that households spend on consumption is called the marginal propensity to consume.
b. As the real interest rate falls, additional projects with lower expected rates of return become profitable for firms, and the demand for investment curve shifts right.
c. Firms with excess inventories of finished goods have an increased incentive to invest in new capital to put those inventories to productive use.
d. None of the above is true.
Many ideologies stem from older theories. The ideas of the philosophers are simplified. Ideologies
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