As inflation decreases, households become ________ uncertain leading to ________ spending.

A. less; less
B. less; more
C. more; more
D. more; less


Answer: B

Economics

You might also like to view...

In the United States, the productive factor that, as a group, receives the largest fraction of the nation's total income is

A) labor. B) consumption goods and services. C) land. D) entrepreneurshi

Economics

If lenders anticipate no changes in liquidity, information costs, and tax differences, the yield on a risky security should be

A) greater than that on a safe security and the price of a risky security should also be greater than that of a safe security. B) less than that on a safe security and the price of a risky security should also be less than that of a safe security. C) greater than that on a safe security and the price of a risky security should be lower than that of a safe security. D) less than that on a safe security and the price of a risky security should be greater than that on a safe security.

Economics

Babe Ruth's 1931 salary was $80,000 . Government statistics show a consumer price index of 15.2 for 1931 and 237 for 2015 . Ruth's 1931 salary was equivalent to a 2015 salary of about

a. $5,296. b. $1,128,421 c. $1,247,368 d. $17,152,000

Economics

According to the foreign trade effect, when the U.S. price level decreases, U.S. consumers are likely to buy:

A. More American-made products. B. Different American-made products. C. More foreign-made products. D. Less of all products, both American made and foreign made.

Economics