When the price of DVDs falls relative to movie and restaurant prices, and consumers buy more of the DVDs, economists call this
A. substitution.
B. satisfaction.
C. marginalization.
D. indifference.
Answer: A
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If the MPC = 0.75, the government spending multiplier would be
A) 0.25. B) -7.5. C) 4. D) 25.
Some corporate governance experts believe that serving on a company's board of directors for an extended length of time ________that member's independence from the company's CEO. If this is true, it would tend to ________ the principal-agent problem
A) enhances; increase B) has no impact on; increase C) diminishes; increase D) diminishes; decrease
What are the two policy options used to influence the economy?
What will be an ideal response?
Which one of the following would not shift the aggregate demand curve?
A. A change in the price level. B. Depreciation of the international value of the dollar. C. A decline in the interest rate at each possible price level. D. An increase in personal income tax rates.