Author Question: If both market demand and supply decrease simultaneously, then equilibrium quantity will (be) ____ ... (Read 35 times)

JGIBBSON · **on:** Jun 30, 2018

If both market demand and supply decrease simultaneously, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
a. increase; increase
b. indeterminate; decrease
c. decrease; indeterminate
d. decrease; decrease

Question 2

Each additional round of the multiplier process will tend to be larger:
a. the smaller the MPC.
b. the greater the rate of income taxation.
c. the less people save from increases in their incomes.
d. the larger the fraction of each dollar of domestic income spent on imported goods.
e. in each of the above cases.