If consumers expect future prices to be higher
A. they substitute current purchases for future purchases of perishable products.
B. the demand for automobiles today will not change.
C. the position of the demand will not change.
D. stockpiling will happen when products are durable in nature.
Answer: D
You might also like to view...
In the steady-state diagram of the Solow model, an increase in saving per worker is shown by
A) shifting the saving-per-worker curve down, resulting in a lower steady-state capital—labor ratio. B) shifting the saving-per-worker curve up, resulting in a higher steady-state-capital—labor ratio. C) shifting the saving-per-worker curve up, resulting in a lower steady-state capital—labor ratio. D) shifting the saving-per-worker curve down, resulting in a higher steady-state capital—labor ratio.
Suppose that savers become much more willing to purchase a certain type of municipal bond. The result will be that the bond's price will
A) fall relative to the price of U.S. Treasury securities but rise relative to the price of corporate bonds. B) rise relative to the price of U.S. Treasury securities but fall relative to the price of corporate bonds. C) rise relative to the prices of U.S. Treasury securities and corporate bonds. D) fall relative to the prices of U.S. Treasury securities and corporate bonds.
The Federal Open Market Committee consists of:
a. the 12-member Board of Governors. b. seven members of the Board of Governors and five district presidents. c. the president of the New York district bank and the members of the Council of Economic Advisers. d. the chairman of the Board of Governors and five district presidents. e. seven members of the Board of Governors and a nine-member board of directors of the district banks.
Which of the following affected aggregate demand during the recession of 2008-2009?
a. a decline in residential construction and a decrease in lending b. a decline in residential construction but not a decrease in lending c. a decrease in lending but not a decline in residential construction d. neither a decrease in residential construction nor a decrease in lending