Which of the following could be a cause of consumption decreasing?

A. Wealth increases.
B. Real income increases.
C. Expected future income increases.
D. Interest rates increase.


Answer: D

Economics

You might also like to view...

Suppose that last year, the price of strawberries was $2 and the price of milk was $1. This year, the price of milk is $2 and the price of strawberries is $1. Which of the following statements is true?

A) The CPI does not change because the change in the two prices is the same. B) The CPI increases because milk is more expensive. C) The CPI decreases because strawberries are cheaper. D) The CPI might increase or decrease depending on the quantities in the CPI market basket. E) The change in the CPI depends how the market basket changed between the two years.

Economics

Over long periods of time, the cyclical rate of unemployment, on average, ________

A) approaches infinity B) approaches a value of one C) should be close to zero D) approaches the natural rate

Economics

A theory asserts that manufacturers are less willing to sell units of output as the price of a good decreases, ceteris paribus. However, as the price of computers fell throughout the 1990s, more computers were sold. Which of the following best explains the apparent conflict between theory and data? a. The theory must be invalid

b. The theory rests on assumptions that are too simplistic. c. It is likely that variables other than the price and quantity of computers sold were changing. d. All variables other than the price and quantity of computers sold were unchanged.

Economics

Three landscapers, Allen, Betty, and Christina, are visiting the lawn and garden supply store. Allen is choosing between a mower with a 40-inch blade and a mower with a 28- inch blade. Betty is picking up her mower, which was in for scheduled maintenance. Christina is putting up a For Sale sign advertising her equipment and list of customers. Who is operating in the short run?

a. Allen and Betty b. Betty and Christina c. Allen only d. Betty only e. Christina only

Economics