The decline in stock prices from 2000 through 2002
A) increased individuals' willingness to spend.
B) had no effect on individual spending.
C) reduced individuals' willingness to spend.
D) increased individual wealth.
C
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Figure 5-5 shows a consumer budget line for French fries and hamburgers. The household allocates a budget for these two goods. Suppose that the price of an order of French fries is $2, what is household income?
A. $1 B. $2 C. $5 D. $10
The income approach measures GDP by adding together compensation of employees, proprietors' income, ________
A) net investment, saving, and farmers' income B) net interest, rental income, and corporate profits C) net investment, rental income, and corporate profits D) net saving, investment income, and profits
The beige book is prepared by
A) district banks. B) Board of Governors. C) FOMC staff members. D) commerce department.
Refer to the above figure. Other things being equal, when the government imposes a price floor at P2, then we would expect
A. price to decline until an equilibrium is achieved at P0. B. consumers to bid against each other for goods and force the price even higher. C. a surplus will occur. D. the quantity demanded is Q2.