Assume that global recession causes the quantity of tin demanded to decrease by 4 million pounds at each price To maintain the price of tin at the target price you would ?
Correct answer: C. buy 4 million pounds of tin
- A. sell 4 million pounds of tin
- B. sell 8 million pounds of tin
- C. buy 4 million pounds of tin
- D. buy 8 million pounds of tin
Explanation
A 4-million-pound fall in demand would create excess supply and push the price below its target. Buying 4 million pounds removes that surplus and supports the target price.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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