What type of relationship exists between expected future income and consumption?
A. Negative
B. Positive
C. Indirect
D. Constant
B. Positive
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An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
When the government sets a maximum price that can be charged for a good or service, it creates
A. a price ceiling. B. a price support. C. a white market. D. a price floor.
You like to sleep until 11:00 am during the semester. What is the opportunity cost of attending an 8:00 am class?
A) nothing, since you can go back to bed later B) sleep C) obtaining the notes from the 8:00 am class D) the credit hours earned from the 8:00 am class
A change in all of the following variables will change the market demand for a product except
A) the price of the product. B) population and demographics. C) income. D) tastes.