Assuming that bus travel is an inferior good, an increase in consumer income, other things being equal, will cause
a. an upward movement along the demand curve for bus travel.
b. a downward movement along the demand curve for bus travel.
c. a rightward shift in the demand curve for bus travel.
d. a leftward shift in the demand curve for bus travel.
D
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TRUE
What will be an ideal response?
In the United States there are some methods to save which reduce taxes on savings. These include
A) stock purchases. B) commodity purchases. C) money market accounts. D) retirement plans like 401Ks and 403Bs.
A change in the discount rate is likely to occur
A) after a change in the Treasury bill rate. B) after a change in the Treasury bond rate. C) before a change in the federal funds rate. D) before a change in the inflation rate.
Aggregate expenditure will not equal GDP unless
a. next exports are zero. b. transfer payments are zero. c. inventory investment is positive. d. inventory investment is zero. e. inventory investment is negative.