Suppose the demand for widgets is given by QD = 100 - 5p - pd + 2I, where I is average consumer income, p is the price of lemons, and pd is the price of doodads. According to this equation, doodads are a(n) ________ for widgets
A) substitute
B) complement
C) input
D) None of the above
B
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When a bank's excess reserves are zero:
a. its required reserves exceed its legal reserves. b. its liabilities exceed its assets. c. its liabilities must be lower than its assets. d. its required reserves equal its legal reserves. e. it cannot meet its reserve requirement.
Which of the following is not an aspect of Keynesian economics?
A. Wages and prices tend to be inflexible downward. B. Supply does not necessarily generate its own demand. C. Saving depends directly upon the level of income. D. Unemployment is a temporary phenomenon.
If Teena's consumption function is of the form [C = 200 + 0.75Y], her saving equals zero at an income level of
A. 150. B. 675. C. 800. D. 1,500.
Refer to the information provided in Figure 25.1 below to answer the question(s) that follow.
Figure 25.1Refer to Figure 25.1. A movement from Point B to Point D can be caused by
A. a decrease in nominal income. B. an increase in the interest rate. C. an increase in nominal income. D. a decrease in the interest rate.