Other Things Constant, a Decrease in the Demand for Computers

question 38

Multiple Choice

Other things constant, a decrease in the demand for computers will

• A) increase the price of computers.
• B) increase the quantity supplied of computers.
• C) increase the demand for computer manufacturing workers.
• D) decrease the demand for computer manufacturing workers.

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Definitions:

Future Exchange Rate

An agreed-upon price for exchanging currency at a future date, used in forward contracts and currency futures trading.

Indifferent

A state of having no preference between two or more outcomes or items.

Canadian Security

A financial instrument issued in Canada that represents an investment and provides evidence of debt, an equity stake, or a right to ownership in terms of stocks, bonds, or options.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date, used in forward contracts.