If the consumption schedule shifts upward and the shift was not caused by a tax change, the saving schedule:
A. will not shift.
B. may shift either upward or downward.
C. will shift downward.
D. will also shift upward.
C. will shift downward.
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The consumer price index measures the cost of:
A. a fixed basket of goods and services. B. all goods and services purchased by consumers. C. goods and services required to live above the poverty level. D. a changing basket of goods and services.
If the inverse demand curve a monopoly faces is p = 100 - 2Q, then profit maximization
A) is achieved when 25 units are produced. B) is achieved by setting price equal to 25. C) is achieved only by shutting down in the short run. D) cannot be determined solely from the information provided.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Considering both country's production possibilities frontiers, we know that would both agree to terms of trade of one truck to:
A. two cars.
B. four cars.
C. six cars.
D. eight cars.
Which of the following conditions distinguishes the monopolistic competitor from the monopolist?
A. Profit-maximizing rule B. Downward slope of demand curve C. Entry of rivals D. Short-run economic profits