Normal goods will experience decreasing demand when incomes decrease.
Answer the following statement true (T) or false (F)
True
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A rightward shift in the demand curve for domestic assets can be caused by ________
A) a decrease in the domestic real interest rate B) a rightward shift in the supply curve for domestic assets C) a leftward shift in the supply curve for domestic assets D) an increase in the domestic real interest rate
Figure 10-1
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Suppose a perfectly competitive firm’s situation is shown in Figure 10-1 and the firm is currently producing at D. What can be said about this situation?
A. The firm is suffering an economic loss but is maximizing profits. B. The firm is not suffering an economic loss but is not maximizing profits. C. The firm is not suffering an economic loss and should increase output. D. The firm is suffering an economic loss and should decrease output.
Assume that foreign capital flows from a nation increase due to political uncertainly and increased risk. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the reserves account and monetary base in the context of the Three-Sector-Model? a. The reserves account falls and monetary base falls
b. The reserves account rises and monetary base falls. c. The reserves account and monetary base remain the same. d. There is not enough information to determine what happens to these two macroeconomic variables.
In a market economy, the use of resources is determined primarily by
a. needs of people. b. consumer demand. c. decisions of management. d. government regulation.