Which of the Following Would Cause an Unambiguous Increase in the Equilibrium

question 57

Multiple Choice

Which of the following would cause an unambiguous increase in the equilibrium price in a market?

• A)a rightward shift in supply and a rightward shift in demand.
• B)a rightward shift in supply and a leftward shift in demand.
• C)a leftward shift in supply and a rightward shift in demand.
• D)a leftward shift in supply and a leftward shift in demand.

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Definitions:

Net Exports

The value of a country's total exports minus its total imports, representing the net contribution of the export sector to a country's GDP.

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to an investor.

Net Capital Outflow

The difference between a country's total exports of capital and total imports of capital over a certain period, indicating how much capital is flowing out of the country in comparison to what is coming in.

U.S. Bonds

Debt securities issued by the United States Department of the Treasury to finance government spending as an alternative to taxation.