A fall in the average income of a consumer, say during a recession, is represented by:
a. an upward movement along the demand curve for a good consumed by the consumer.
b. a downward movement along the demand curve for a good consumed by the consumer.
c. a shift of the demand curve for a good consumed by the consumer.
d. a rotation of the demand curve for a good consumed by the consumer.
e. an inward shift of the demand curve for an inferior good consumed by the consumer.
c
You might also like to view...
Other things remaining the same, which of the following is likely to decrease both the wage rate and the number of workers hired in a tea estate?
A) An increase in the price of tea B) A decrease in the price of tea C) A decrease in the opportunity cost of leisure D) An increase in the opportunity cost of leisure
Seignorage is also known as an inflation tax since ________
A) money balances lose value in real terms B) inflation can be caused by rising energy costs C) higher interest rates can crowd-out investment spending D) budget deficits entail an increase in the size of the national debt
According to William Shepherd, the total assets of the top 100 firms in the United States have been declining, mostly in response to increased imports
a. True b. False
The smaller the marginal propensity to save, other things constant, _____
a. the smaller the marginal propensity to consume b. the larger the marginal propensity to consume c. the smaller the multiplier d. the flatter the consumption function e. the steeper the saving function