A cut in government spending, a decrease in income abroad, an increase in taxes, or an expectation that future consumer income will fall will all cause aggregate:
A. demand to shift rightward.
B. demand to shift leftward.
C. supply to shift rightward.
D. supply to shift leftward.
Answer: B
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Describe at least three ways that global capital markets are different today from what they were like in the late nineteenth century
What will be an ideal response?
When consumers do not view similar products as perfect substitutes, those products are called:
A. homogenous. B. complements. C. differentiated. D. normal.
Prices provide the rationing function best when
A) prices are flexible. B) prices are inflexible. C) they are used in conjunction with queuing. D) price controls are in place and ration coupons are used too.
If the marginal propensity to consume is 0.8, the marginal propensity to save is:
a. 0.8 b. 0.4 c. 0.2 d. 0.3