If the Price of Aluminum Used to Make Bicycles Increases

question 80

Multiple Choice

If the price of aluminum used to make bicycles increases, the price of a bicycle rises because of a

• A) leftward shift of the supply curve of bicycles.
• B) rightward shift of the demand curve for bicycles.
• C) rightward shift of the supply curve of bicycles.
• D) leftward shift of the demand curve for bicycles.

Understand the relationship between the supply of loanable funds and its impact on interest rates, net capital outflow, and exchange rates.

Identify and explain the effects of changes in investment desirability on the economy.

Analyze the influence of U.S. residents' purchases of foreign assets on exchange rates and market curves.

Evaluate the consequences of fiscal policy changes on government deficit, net capital outflow, and the economy.

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