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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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