A decrease in stock prices will _____ the net wealth of households and _____ consumption.
Fill in the blank(s) with the appropriate word(s).
reduce; decrease
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Which of the following is likely to shift the demand curve for coffee workers to the left, assuming all else equal?
A) An increase in the wage rate B) A decrease in the wage rate C) A decrease in the price of coffee D) An increase in the price of coffee
If the MPC is 0.9, then an increase in taxes of $100 can be expected to __________ consumption by the amount of __________
A) increase; $90 B) decrease; $90 C) increase; $100 D) decrease; $100
When an economist states that a firm is earning zero economic profit, this statement implies that the firm
a. will be forced out of business unless market conditions change. b. is doing as well as it could in any other line of business. c. is earning a zero rate of return on its assets. d. could earn a higher rate of return in other industries.
The second number in any ordered pair is
a. the x-coordinate. b. the y-coordinate. c. the horizontal location of the point. d. the slope.