Suppose that X and Y are complementary goods. If the price of good X decreases, we can expect the:
a. demand for good X to increase.
b. quantity demanded of good Y to decrease.
c. quantity demanded of good Y to increase.
d. demand for good Y to decrease.
e. demand for good Y to increase.
e
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Fred and Wilma just had a baby girl and want to make sure they save enough in the future to send her to college. They begin to save in response to this ________ reason for saving.
A. bequest B. life-cycle C. precautionary D. private
Explain the concept of "learning by doing" with respect to infant industry protection
What will be an ideal response?
Describe the channels through which an open market purchase of bonds by the Fed affects output in a closed economy
What will be an ideal response?
Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This process is called:
a) The upward accelerator b) The downward multiplier c) The upward PPF d) The downward mpc