Which of the following is likely to happen, if consumption in an economy falls?
A) Asset prices rise. B) Household bankruptcies rise.
C) Labor supply falls. D) Mortgage defaults fall.
B
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
The _____________ is a measure of the goods and services affordable and available to consumers
a. standard of living b. level of living c. consumption standard d. online consumer survey
An international producer is trying to centralize its R&D. This is consistent with it trying to
a. Set up a functional division b. Take advantage of the economies of scale c. Take advantage of the learning curve effect d. All of the above
If a firm facing a perfectly elastic demand curve raises its price,
a. it will still sell exactly the same amount of output as it did at the lower price b. it will lose some, but not all, of its sales c. its sales will decrease to zero d. its sales will increase e. it is impossible to predict what will happen to its sales