A decrease in net wealth will
What will be an ideal response?
shift the consumption function downward
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A set of actions that a firm takes to achieve a goal, such as maximizing profits, is called
A) the Porter's Competitive Forces plan. B) game theory. C) a payoff matrix. D) a business strategy.
Suppose automobile salesmen are required to pay a $1000 tax per car sold
Is it likely that the auto salesmen will bear the entire burden of this tax? Why or why not? Would it matter if the demanders were legally required to pay the tax? Explain in detail your answer.
Compared with a firm in a perfectly competitive market, the demand curve faced by a monopolistically competitive firm is
A) more elastic. B) more inelastic. C) perfectly elastic. D) perfectly inelastic.
When the real interest rate is less than zero, then:
a. a creditor will gain purchasing power. b. a creditor will just break even on his or her real loan return. c. a creditor will lose purchasing power. d. a creditor will benefit from inflation. e. a creditor's purchasing power will not be affected, because the nominal interest rate is greater than zero.