In economic terminology, a normal good is a good
A) on which a monetary value cannot be placed.
B) that is liked only by normal people.
C) for which demand increases when price increases.
D) for which demand increases when income increases.
Answer: D
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The situation when the price of most goods and services are falling over time is called:
A. disinflation. B. a boom. C. deflation. D. inflation.
The closer the R2 of a regression is to ________, the ________ accurate and ________ valuable the forecast.
A) 0; less; more B) 0; more; more C) 1; less; less D) 1; more; more
What is one of the benefits of FDIC insurance?
a. Banks are more likely to manage their money carefully. b. It provides banks with an attractive place to invest their reserves. c. It drives down the interest rate. d. Banks are more stable, so the money supply is more stable.
Michelle transfers $4,000 from her savings account to her checking account. What effect is this change likely to have on M1 and M2?
A. M2 increases and M1 stays the same. B. M1 decreases and M2 increases. C. M1 increases and M2 stays the same. D. M1 increases and M2 decreases.