If an economist finds that when consumer incomes increase, consumers buy more cars, Ceteris paribus, then
A. the price of cars must be decreasing.
B. all other things remain constant.
C. the price of gas must be decreasing.
D. the interest rate on car loans must be decreasing.
Answer: B
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In the figure above, how much do the consumers pay in total for the quantity of pizza they buy per day?
A) $100,000 B) $150,000 C) $125,000 D) $50,000 E) None of the above answers is correct.
Suppose the required reserve ratio is 0.1 and Linda deposits $4,000 in cash at the College State Bank. If the bank held no excess reserves before Linda's deposit and now increases its reserves by $500, which of the following is true? a. The bank must have lent out an additional $4,000. b. $500 is the value of the bank's required reserves
c. The bank now has excess reserves of $100. d. Both the bank's assets and its liabilities rise by $500. e. The bank now has $500 in excess reserves.
Americans are creating an enormous amount of solid waste daily-over 4 pounds per person per day. How is the United States coping with this extraordinary problem?
Willis knows that the price of real estate in his city will rise significantly in a few years because many multi-national companies are setting up new offices. He decides to invest a major portion of his income in buying real estate now. This is an example of _____
a. absolute advantage b. rational expectations c. adaptive expectations d. sticky wages