If a profit-maximizing restaurant is going to increase its revenues by charging senior citizens (persons age 65 and over) lower prices than other customers,
a. the demand of senior citizens for the services of the restaurant must be inelastic.
b. senior citizens must have lower incomes than other potential customers.
c. the demand of senior citizens for the services of the restaurant must be elastic.
d. senior citizens must have higher incomes than other potential customers.
e. other customers must enjoy food more than senior citizens.
C
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A) the effect of deficit spending. B) discretionary fiscal policy. C) automatic fiscal policy. D) automatic monetary policy. E) discretionary monetary policy.
A doctor pursuing the interests of his patients rather than his own interests is an example of the principal-agent problem
Indicate whether the statement is true or false
Which of the following correctly describes the marginal propensity to consume?
a. The change in savings divided by the change in consumption. b. The change in consumption spending divided by the change in disposable income. c. The change in real disposable income divided by the change in consumption. d. The change in savings divided by the change in disposable income.
What interest rate has been the focus of monetary policy?
What will be an ideal response?