When people expect their income to be lower in the future, they will be:
A. more inclined to save.
B. unaffected in their present choices.
C. less inclined to save.
D. People only react and change their savings decisions based on recent history.
Answer: A
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In the figure above, suppose the price of a pound of pecans is negatively related to the quantity of peanuts that farmers are willing to supply. If the price of pecans increases,
A) the curve will shift rightward. B) the curve will shift leftward. C) there is a movement along the curve. D) the curve will be unaffected. E) None of the above answers is correct because the graph assumes that the price of pecans does not change.
As output increases, average fixed cost
a. remains constant. b. decreases. c. rises and then falls. d. falls and then rises.
A major U.S. motive for negotiating a free-trade agreement with Mexico was to
a. increase immigration into the United States b. encourage Mexico's recent drive to achieve a more market-oriented economy c. keep Mexico from going Communist d. achieve, ultimately, political union with Mexico e. help foster the study of the Spanish language in the United States as a means to trading with all Spanish-speaking countries
Either a price floor or a price ceiling above the equilibrium price would cause a surplus
a. True b. False Indicate whether the statement is true or false