If Both the Demand for and the Supply of Computers

question 19

Multiple Choice

If both the demand for and the supply of computers are increasing, which of the following statements is true?

• A) The consumer should buy a computer now since the price will be higher in the future.
• B) The consumer should wait and buy a computer later since the price will be lower in the future.
• C) The price of a computer will be the same in the future as it is now.
• D) It is impossible to know, given only this information, whether the prices of computers will go up or down in the future.

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Definitions:

Aggregate Supply

Aggregate supply is the total supply of goods and services that firms in an economy are willing and able to produce at a given overall price level in a specific time period.

National Debt

The total amount of money that a country's government has borrowed by issuing securities, typically through bonds.

Fiscal Deficit

The financial shortfall when a government's expenditures exceed its revenue.

International Monetary Fund

An international organization created for the purpose of promoting global monetary and exchange stability, facilitating the expansion and balanced growth of international trade, and assisting in the establishment of a multilateral system of payments for current transactions.