Which of the following events illustrates the law of demand: Other things remaining the same, a rise in the price of a good will ________
A. decrease the quantity demanded of that good
B. increase the demand for a substitute of that good
C. decrease the demand for the good
D. increase the demand for a complement of that good
A The law of demand is the inverse relationship between the price of a good and the quantity demanded.
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The government (G) category of gross domestic product (GDP) excludes welfare and other transfer payments
a. True b. False Indicate whether the statement is true or false
The marginal propensity to consume (MPC) is computed as the change in consumption divided by the change in:
a. GDP. b. income. c. saving. d. none of these.
When reality show participants travel through foreign countries, they are generating a
A. Supply of U.S. dollars and a demand for a foreign currency. B. Supply of U.S. dollars and a supply of a foreign currency. C. Demand for U.S. dollars and a supply of a foreign currency. D. Demand for U.S. dollars and a demand for a foreign currency.
A situation in which the price level increases at an extremely high rate is called:
A. stagflation. B. inflation. C. disinflation. D. hyperinflation.