If Americans became more pessimistic about the economy, what would happen to the consumption-income line?
a. A rightward movement along the line
b. A leftward movement along the line
c. The entire line would shift upward
d. The entire line would shift downward
e. The entire line would shift downward and there would be a rightward movement along the new line
D
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Changes in the size of an industry may cause supply to shift
a. True b. False Indicate whether the statement is true or false
In macroeconomics, which of the following topics would most likely be studied?
A. The growth rate of the oil industry B. Bob's budget C. Unemployment in Mexico. D. Nike's costs of production
The price elasticity of demand can be defined as ______.
a. the percentage change in price divided by the percentage change in quantity demanded b. the percentage change in quantity demanded divided by the percentage change in price c. the percentage change in price multiplied by the percentage change in quantity demanded d. the percentage change in quantity demanded multiplied by the percentage change in price
Briefly explain the difference between idiosyncratic risk and systematic risk. Provide an example of each.
What will be an ideal response?