Other things equal, which of the following is true?
a. A reduction in prices will increase the real wealth of those holding a fixed quantity of money.
b. A reduction in prices will lead to a decline in net exports.
c. A reduction in prices will increase the scarcity of money, raise the real interest rate, and, thereby, encourage investment and consumption.
d. A reduction in prices will increase profit margins and, thereby, stimulate additional investment.
A
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Which of the following statements is most accurate about ownership of household goods, such as flush toilets, refrigerators, televisions, clothes dryers and automobiles?
a. In 2005, very few "officially poor" Americans owned these goods. b. The same proportion of Americans who were officially poor owned these goods in 2005 in comparison to 1950 . The proportion of officially poor Americans who owned these goods in 2005 was equal to the proportion of all households who owned these goods in 1950. c. A higher proportion of "poor" Americans owned these goods in 2005 compared to the proportion of all U.S. households who owned these goods in 1950. d. The proportion of Americans at the poverty level who owned these goods in 2005 was exactly double the proportion of all households who owned these goods in 1950.
Aggregate supply grows over time because of growing consumer and government spending
a. True b. False Indicate whether the statement is true or false
Since the early 1970s, average incomes have
a. increased, which has reduced the poverty rate. b. increased, while the poverty rate increased slightly. c. decreased, while the poverty rate has remained unchanged. d. remained unchanged, while the poverty rate has decreased.
The peak phase of the business cycle represents
A) a temporary maximum output level of Gross Domestic Product (GDP).
B) an increase in foreign investment.
C) a labor surplus.
D) falling prices.