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☆☆☆☆☆Cards in this guide (8)
The interest rate banks charge each other on overnight loans
Federal Funds Rate
How is an increase in demand represented
by a shift to the right of the demand curve
What effect does a rise in the cost of machinery or raw materials have on the cost of a good
The good becomes more expensive to produce.
How does a firm generally respond to a higher demand for its goods
it rations goods
What is a market structure in which many companies sell products that are similar but not identical called
monopolistic competition
Which of the following best defines the law of supply
As the price of a good rises, the amount of the good supplied rises.
If the government uses tax money to pay for long-term investments such as roads or other infrastructure what happens to the economy
investment increases
What events would cause a shift to the right in the supply curve
Upgrades to its mixing equipment allow the plant to make more bars.
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