If the consumption schedule shifts downward, and the shift was not caused by a tax change, then the saving schedule:
A. May shift either upward or downward
B. Will shift downward
C. Will shift upward
D. Will not shift
C. Will shift upward
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In the 1980s, a new category entitled ________ was added to M1
A) money market mutual fund deposits B) other checkable deposits C) demand deposits D) traveler's checks
A household increases its wealth by
A) increasing its capital consumption. B) making sure that its net investment exceeds its gross investment. C) saving. D) spending more on consumption goods. E) decreasing its depreciation.
Which of the following statements is true?
A) A decrease in supply causes equilibrium price to rise; the increase in price then results in a decrease in quantity demanded. B) If demand increases and supply decreases one cannot determine if equilibrium price will increase or decrease without knowing which change is greater. C) An increase in demand causes an increase in equilibrium price; the increase in price causes supply to increase. D) If both demand and supply decrease, there must be a decrease in equilibrium price; equilibrium quantity may either increase or decrease.
An economy that engages in international trade is called
A) a cooperative economy. B) a modern economy. C) an engaged economy. D) an open economy.