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.
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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.
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?
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
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.