If the demand for steak increases as income increases, then steak is a(n):
A. complementary good.
B. inferior good.
C. normal good.
D. substitute good.
Answer: C
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The rightward shift of the RS curve will lead to a ________ in the U.S. exchange rate, ________ in real GDP, and a ________ in the price level
A) rise; a decrease; fall B) rise; an increase; rise C) fall; an increase; rise D) rise; an increase; fall E) fall; an increase; fall The figure above shows the market for loanable funds. The supply of loanable funds curve shifts rightward.
When exchange rates are not determined in the market but are instead set by a country's central bank, we say that the country's exchange rate is
A) fixed. B) a real exchange rate. C) flexible. D) a nominal exchange rate.
Mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgage payments are known as ________ mortgages
A) reciprocal B) Alt-A C) gray market D) subprime
The following is an example of risk aversion
a. those applying for a well-paid job tend to be the most qualified b. more reckless drivers opt for cars with fewer safety devices c. the contractor with the lowest bid for a is the most qualified d. Initial Public Offerings (IPOs) seek investors when prospects look poor