According to Milton Friedman, how will your consumption be affected by a $2,00 . fine for littering and a $50 cut in your weekly salary that your boss told you to get used to it because it's here to stay? Explain


The $2,00 . fine has a transitory effect on your income, so you won't change your spending patterns very much. The $50 cut in your weekly salary has a permanent effect on your income. Since consumption spending is generally tied to long-run earning capacity, you will probably reduce your spending.

Economics

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If you sold a short contract on financial futures you hope interest rates

A) rise. B) fall. C) are stable. D) fluctuate.

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Beach resorts raise their prices during the summer months and yet more people book rooms at those times. Is this a violation of the law of demand?

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Suppose the domestic supply (QS) and demand (QD) for skateboards in the United States is represented by the following set of equations:QS = -60 + 3PQD = 390 - 2PIn the absence of international trade in skateboards how many skateboards will be sold in the United States?

A. 210 B. 930 C. 138 D. 258

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The international agency that lends money to DVCs for economic development projects is the:

A. World Bank. B. International Monetary Fund (IMF). C. World Trade Organization (WTO). D. World Credit Union.

Economics