For an inferior good, an increase in consumer incomes results in an increase in the quantity demanded of the good
a. True
b. False
Indicate whether the statement is true or false
False
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Foreign direct investment in the United States declined 42 percent in the first quarter of 2009. This means that
A) people or firms in other countries reduced their building of facilities or purchases of facilities in the United States by 42 percent in the first quarter of 2009. B) people or firms in the United States reduced their purchases of stocks and bonds in foreign countries by 42 percent in the first quarter of 2009. C) people or firms in other countries reduced their purchases of stocks and bonds in the United States by 42 percent in the first quarter of 2009. D) people or firms in the United States reduced their building of facilities or purchases of facilities in foreign countries by 42 percent in the first quarter of 2009.
Demand for a country's independently floating currency is a function of the demand for that country's goods, services, and financial assets.
a. true b. false
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
A decrease in the marginal benefit arising from a specialized investment will cause the optimal contract length to:
A. decrease. B. increase. C. either increase or decrease. D. remain constant.