When demand curves shift to the left, buyers become less sensitive to price increases because they consume fewer of these goods
Indicate whether the statement is true or false
F
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A corporation ________ taxes on its profits and its stockholders ________ taxes on any dividends made to them by the company
A) pays; pay B) pays; do not pay C) does not pay; pay D) does not pay; do not pay
Refer to the following graph. The principle of diminishing returns is illustrated by the
a. upward sloping portion of the MP curve.
b. downward sloping portion of the MP curve.
c. upward sloping portion of the AP curve.
d. downward sloping portion of the AP curve.
Suppose that real GDP is initially $13 trillion and the government attempts to increase real GDP to $14 trillion
The marginal propensity to consume is 0.75, and every $1.00 increase in real government spending crowds out $0.50 in real planned investment expenditures. How much increase in real government spending could lead to the desired level of real GDP? A) $200 billion B) $250 billion C) $500 billion D) $1 trillion
Central banks get the purchasing power to buy government securities by:
a. Making discount loans to banks. b. Taking loans from the government. c. Increasing their liabilities in the form of deposits from banks. d. All of the above. e. None of the above.