The income effect is the change in the quantity demanded of a good that results from
a. the effect of a change in the price on consumer purchasing power.
b. the effect of a change in the price making the good more or less expensive relative to other goods,
holding constant the effect of the price change on consumer purchasing power.
c. either (a) or (b).
d. none of the above.
a. the effect of a change in the price on consumer purchasing power.
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The process of research and development
A. always leads to useful products. B. almost never leads to useful products. C. often involves a waste of resources. D. is usually conducted in governmental laboratories.
The Keynesian theory of money demand predicts that people will increase their money holdings if they believe that
A) interest rates are about to fall. B) bond prices are about to rise. C) expected inflation is about to fall. D) bond prices are about to fall.
A market shortage is:
A.) Equal to the quantity supplied. B.) Caused by a price ceiling. C.) Caused by scarce resources. D.) Caused by a price floor.
A U.S. tariff on steel would reduce imports and lower the price of U.S. steel products.
Answer the following statement true (T) or false (F)