If people expect prices to fall in the future, today
a. the consumption curve shifts downward
b. the consumption curve shifts upward
c. the investment curve shifts downward
d. there will be an upward movement along their consumption curves
e. there will be a downward movement along their consumption curves
A
You might also like to view...
Explain the differences between the public debt and the government budget deficit
What will be an ideal response?
If Weiskamp T-shirt Co lowers its price from $6 to $5 and finds that students increase their quantity demanded from 400 to 600 T-shirts, then the demand for Weiskamp T- shirts within the $5 to $6 price range is
a. price inelastic b. price elastic c. unit elastic d. cross elastic e. income inelastic
Firms that coordinate economic activities to reduce competition is considered illegal per se.
Answer the following statement true (T) or false (F)
If the nominal interest rate is 10% and prices generally increase 5%, the real rate of interest is
A. 5%. B. 10%. C. 15%. D. 20%.