Ceteris Paribus,which of the Following Would Generally Cause an Increase

question 110

Multiple Choice

Ceteris paribus,which of the following would generally cause an increase in the demand curve for new automobiles?

• A)A decrease in the price of new automobiles.
• B)An increase in consumers' income.
• C)The new models being perceived as ugly compared with old models.
• D)Consumer expectations that the price of new automobiles will be lower next year.

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Definitions:

Bank Failures

Occurs when a bank is unable to meet its obligations to depositors or creditors and is taken over by a regulatory agency.

New York Federal Reserve

One of the 12 Federal Reserve Banks of the United States, playing a key role in monetary policy, financial supervision and the payments system.

Money Supply

The total quantity of money available in an economy at a specific time, including currency and various types of bank deposits.

Open Market Purchases

The buying of government securities by a central bank to inject money into the economy.