The income effect is the
A) increase in the interest rate caused by an increase in Real GDP.
B) increase in the interest rate due to a higher expected inflation rate.
C) decrease in the interest rate due to an increase in the supply of loanable funds.
D) change in national income brought about by a change in interest rates.
E) rate of change in national income brought about by a change in the supply of money.
A
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When economists describe "a market," they mean
A. any place where, or mechanism by which, buyers and sellers interact to trade goods, services, or resources. B. any place where stocks and bonds are traded. C. a hypothetical place where the production of goods and services takes place. D. a communication network that allows individuals to keep in touch with each other.
Which of the following statements is true?
A) If the price of a good is raised and total revenue does not change, demand is perfectly elastic. B) If the price of a good is lowered and total revenue increases, demand is inelastic. C) If the price of a good is lowered and total revenue decreases, demand is elastic. D) If the price of a good is raised and total revenue increases, demand is inelastic.
If the price of a good falls, the marginal utility per dollar spent on that good:
a. also falls. b. stays the same. c. rises. d. will rise or fall, depending on the consumer. e. remains unchanged, provided the consumer buys no more of the good.
The distinction between saving and savings is that saving is ________, while savings is ________.
A. the flow of funds that is not consumed out of income; the plural of saving B. the flow of funds that someone invests in bank savings accounts; the stock of funds that represents the accumulated amount of net saving over time C. the flow of funds that is not consumed out of income; the stock of funds that is invested in bank savings accounts D. the flow of funds that is not consumed out of income; the stock of funds that represents the accumulated amount of net saving over time