During economic contractions, transfer payments such as welfare benefits _____
Fill in the blank(s) with the appropriate word(s).
automatically increase, reducing the impact of the contraction on disposable income.
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When the price of a normal good decreases, people buy ________ of the good due to ________
A) more; the substitution effect only B) more; the substitution and income effects C) less; the substitution effect only D) less; the income effect only
According to liquidity preference theory, an increase in the price level shifts the
a. money demand curve rightward, so the interest rate increases. b. money demand curve rightward, so the interest rate decreases. c. money demand curve leftward, so the interest rate decreases. d. money demand curve leftward, so the interest rate increases.
Which of the following would DECREASE the demand for tennis balls?
A. A decrease in average household income when tennis balls are a normal good B. An increase in the cost of producing tennis balls C. A decrease in the price of tennis rackets D. An increase in the price of tennis balls
Which of the following are steps in ABC classification (i.e., applying Pareto's Law)?
a. Classify companies by sales b. Provide stewardship for each customer c. Modify classifications based on strategic issues d. Restructure companies based on size e. Both A and C