Author Question: In the above figure, the shift in the demand curve from D to D2 can be the result of A) an ... (Read 79 times)

wrbasek0 · **on:** Jun 30, 2018

In the above figure, the shift in the demand curve from D to D2 can be the result of

A) an increase in the price of soda, a complement to pizza.
B) a decrease in the supply of pizza that raises the price of pizza.
C) an increase in income if pizza is a normal good.
D) a change in quantity demanded.
E) an increase in the price of a sub sandwich, a substitute for pizza.

Question 2

If a 1 million open market purchase by the Fed generates a new deposit at a bank that immediately causes the bank's reserves held at the Fed to increase by 1 million, then the T-account effects are that the bank's assets and liabilities ________ by

1 million and that the Fed's assets and liabilities ________ by 1 million.
A) increase; decline B) decline; decline C) increase; increase D) decline; increase