Steak is a normal good. If the price of steak increases,
a. the income effect on the demand for steak will reinforce the substitution effect
b. the income effect on the supply of steak will, to some extent, offset the substitution effect
c. the budget line will rotate outward
d. consumers' purchasing power will increase
e. the budget line will shift outward
A
You might also like to view...
For this question, assume that policy makers are pursuing a fixed exchange rate regime. Now suppose that households decide to decrease consumption because of, for example, a reduction in consumer confidence. Given this information, we would expect which of the following to occur?
A) a reduction in the domestic interest rate B) an increase in E C) a reduction in E D) a reduction in investment E) none of the above
Money that can be used to purchase capital goods is known as
a. financial capital. b. profit. c. liquid capital. d. interest.
Which of the following is a deficit item on the U.S. balance of payments accounts?
A) A U.S. firm sells a product to a Mexican firm. B) An Italian tourist in Miami purchases a beach ball. C) A Spaniard buys 100 shares of Ford stock. D) A U.S. resident buys gold from the Japanese central bank.
Indemnity coverage does not include:
a. compensation toward the cost of medical services in the event of illness. b. compensation toward the cost of medical services for routine health issues. c. compensation toward the cost of medical services in the event of injury. d. both b. and c.