According to the income effect, when the price of automobiles rises, people buy fewer automobiles because:
A. they substitute other forms of transportation for driving.
B. the nominal amount of their paychecks is smaller.
C. the purchasing power of their income is reduced.
D. their demand for automobiles is very elastic.
Answer: C
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What is the dominant strategy in the prisoner's dilemma?
A) There is no dominant strategy. B) Each prisoner confesses because this is the rational action to pursue. C) Do nothing in the hope that the other prisoner will also do nothing. D) Do not confess because the other prisoner will most likely confess.
Fixing the financial system after the Great Recession meant:
a. Finding a way to make the banking and general financial systems solvent, and solving the nation's illiquidity problems. b. Finding private (domestic and foreign) private buyers for U.S. subprime loans. c.Changing banking rules so there was more financial competition. d. Opening long-term financing sources, which would allow banks, companies, and the U.S. government to fund their long-term needs, such as new branches, plants, and infrastructure (e.g., bridges and dams) needs.
If the Federal Reserve Bank wants to lower the supply of money, it sells government bonds from its portfolio to the public in the nation’s bond markets.
Answer the following statement true (T) or false (F)
Based on the information in the above table, what is the unemployment rate? What is the labor force participation rate?
What will be an ideal response?