John just won the Megamillions jackpot. We can assume that his demand for all:
A. normal goods will increase.
B. inferior goods will increase.
C. normal goods will decrease.
D. normal goods will stay the same.
A. normal goods will increase.
You might also like to view...
The table above shows sales of the firms in the pet food industry. The Herfindahl-Hirschman Index in the industry is
A) 1260. B) 1443. C) 1100. D) 1588.
Answer the following statements true (T) or false (F)
1. When U.S. citizens travel on United Airlines to Japan, this constitutes a debit in the U.S. balance of payments. 2. The financial account includes income earned on investments made in prior years. 3. When a U.S. citizen buys goods from a foreign merchant, the goods are usually paid for by having the U.S. citizen send a personal check or dollars directly to the exporter. 4. Although prices in the United States and France may be stable, changes in the exchange rate between dollars and euros can make the actual cost of trade more expensive for one or the other. 5. As the price of foreign exchange increases in terms of the U.S. dollar, U.S. products become cheaper for foreigners to buy.
The view that individuals weigh all available evidence when they formulate their expectations about economic events (including information concerning the probable effects of current and future economic policy) is called:
A. the adaptive expectations hypothesis. B. the permanent income hypothesis. C. the rational expectations hypothesis. D. the Phillips curve.
Refer to the above figure. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new short-run equilibrium is given by point
A. A. B. B. C. C. D. D.