Stock market wealth decreases. What is the impact on aggregate expenditures and income?

A) Both increase.
B) Both decrease.
C) Aggregate expenditure increases and income decreases.
D) Aggregate expenditure decreases and income increases.


B

Economics

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Suppose an economy produces milk and honey, and milk is plotted along the horizontal axis of the production possibilities frontier. The MRT is 2.5 at the current point of production, and the price of honey is $5 per unit

What is the current price of milk if the market outcome is efficient? A) $12.50 per unit B) $10 per unit C) $2 per unit D) $1 per unit

Economics

When the economy is initially at full employment: a. contractionary monetary policy can result in increased real output, but only in the short run

b. contractionary monetary policy can result in increased real output in both the short run and long run. c. contractionary monetary policy can result in decreased real output, but only in the short run. d. contractionary monetary policy can result in decreased real output in both the short run and long run.

Economics

Suppose the demand for rental apartments decreased substantially. We would expect to observe

A) no change in rent and a sharp reduction in quantity supplied in the short run, and an even larger decrease in quantity supplied in the long run. B) a large decrease in quantity supplied in the short run, followed by a counter-reaction and an increase in quantity supplied in the long run. C) a small decrease in quantity supplied and significantly lower rents in the short run, and quantity supplied to decrease much more in the long run. D) a large decrease in quantity supplied in the short run and the long run, but much larger reductions in rent in the long run.

Economics

The aggregate consumption function is C = 1,000 + 0.9Yd. If income is $3,600 and net taxes are $600, consumption equals

A. 2,400. B. 3,400. C. 3,700. D. 4,000.

Economics