If the own price elasticity of demand is infinite in absolute value, then:
A. consumers do not respond at all to changes in price.
B. demand is perfectly elastic.
C. the demand curve is vertical.
D. the demand curve is vertical and consumers do not respond at all to changes in price.
Answer: B
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Define autonomous consumption and explain how it is represented on a consumption function graph
What will be an ideal response?
Writer Thomas Friedman asserts that "America is the greatest engine of innovation that has ever existed and it can't be duplicated anytime soon, because"
A. of its extreme freedom of thought. B. of its emphasis on independent thinking. C. of its steady immigration of new minds. D. of all of the factors listed.
Aji Fatou, a U.S. residents, buys a designer dress produced by an American-owned fashion shop in France. As a result:
a.) US consumption increases, US net exports decrease, and U.S. GDP is unaffected. b. US consumption increases, US net exports decrease, and U.S. GDP increases. C. US consumption increases, US net exports decrease, and U.S. GNP decreases. d. US consumption increases, US net exports are unaffected, and U.S. GDP is unaffected.
Refer to the information provided in Figure 26.5 below to answer the question(s) that follow.
Figure 26.5Refer to Figure 26.5. As a result of ________, the equilibrium interest rate increases and the equilibrium output level decreases.
A. a decrease in government spending B. an increase in the price level C. an increase in government spending D. a decrease in the price level