If a good is inferior, then an increase in income will result in a(n)
a. increase in the demand for the good.
b. decrease in the demand for the good.
c. movement down and to the right along the demand curve for the good.
d. movement up and to the left along the demand curve for the good.
b
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When weighing the efficiency of monopolistic competition, which of the following should be considered?
i. The information provided by advertising ii. Product variety iii. The extra cost of excess capacity A) ii only B) i and iii C) ii and iii D) i, ii, and iii E) iii only
A decrease in the price level will
a. have no effect on aggregate demand b. decrease aggregate demand c. decrease aggregate expenditure d. decrease the equilibrium level of national income e. increase the equilibrium level of national income
In the former Soviet Union, nearly all resources were owned by
A. the government. B. business firms. C. individuals. D. foreigners.
Assume that the currency-deposit ratio is 0.3 and the reserve-deposit ratio is 0.2. What is the money multiplier?
A. 1.5 B. 2.6 C. 5.0 D. 2.0