7. All else the same, when the supply of a good or service rises, then equilibri
ID: 2439121 • Letter: 7
Question
7. All else the same, when the supply of a good or service rises, then equilibrium price will also tend to rise.
True
False
11. When the federal government increases the budget deficit, this causes national saving to ____ and the equilibrium interest rate to ____ in a closed economy.
decrease : decrease
decrease : increase
increase : decrease
increase : increase
13.Suppose the quantity demanded of a good is smaller than the quantity supplied of a good. We can expect:
the demand for the good to decrease.
the price of the good to increase.
the price of the good to decrease.
the supply of the good to increase.
22.
All else the same, when the demand for a good or service rises, then equilibrium price will tend to also rise.
True
False
True
False
11. When the federal government increases the budget deficit, this causes national saving to ____ and the equilibrium interest rate to ____ in a closed economy.
decrease : decrease
decrease : increase
increase : decrease
increase : increase
13.Suppose the quantity demanded of a good is smaller than the quantity supplied of a good. We can expect:
the demand for the good to decrease.
the price of the good to increase.
the price of the good to decrease.
the supply of the good to increase.
22.
All else the same, when the demand for a good or service rises, then equilibrium price will tend to also rise.
True
False
Explanation / Answer
Ans:
7) False
The increase in the supply will shift the supply curve to right and this causes the equilibrium price to fall.
11) decrease : increase
The increase in the budget deficit means government is spending more and this decreases national savings.A decrease in national savings causes the equilibrium interest rate to rise.
13) the price of the good to decrease.
when the quantity supplied is greater than quantity demanded,the price of the good decrease.
22) True
when the demand for a good or service rises, the demand curve will shift to the right and the equilibrium price will rise.
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