The wealth effect explains the:
A. positive relationship that exists between consumer spending and overall price level.
B. negative relationship that exists between consumer spending and overall asset valuation.
C. positive relationship that exists between consumer spending and overall asset valuation.
D. negative relationship that exists between consumer spending and overall price level.
Answer: D
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Why are corporate executives are often guaranteed "golden parachutes" if they should be fired?
a. To give them the incentive to take the higher levels of risk desired by stockholders. b. To ensure that they exercise great caution in spending stockholders' money. c. To encourage the most experienced people to apply for the executive positions. d. To provide a signal to the public that the firm is on solid financial ground.
If the production of a good causes pollution (an external cost), is the unregulated competitive market equilibrium of that product efficient?
What will be an ideal response?
Since the founding of the IMF, most international reserves have been held in
A) gold. B) silver. C) U.S. dollars. D) British pounds sterling.
On August 15, 1971, the United States
A) returned to the gold standard. B) suspended the convertibility of dollars into gold. C) provided unlimited dollar reserves to the German central bank to help end a speculative attack on the mark. D) provided unlimited dollar reserves to the Bank of England to help end a speculative attack on the pound.