Use the above figure. Which graph depicts substitute goods?
A) A
B) B
C) C
D) D
D
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If you overhear a group of people talking about their plans to save for their retirement and one of them says that it causes them to save less because, as they reason it, "the government is saving for me," you would attribute this to the
A. asset substitution effect. B. induced retirement effect. C. slovenly effect. D. bequest effect.
A bond that pays a yearly interest rate of $100 is for sale. The interest rate was 10 percent and now is 5 percent. The price of the bond has
A) decreased from $1000 to $500. B) increased from $1000 to $2000. C) decreased from $2000 to $1000. D) increased from $500 to $2000.
Competition in the form of advertising, better customer service, or longer warranties can also reduce profits by raising costs
Indicate whether the statement is true or false
The classical economists argued that planned saving and planned investment will always be equal because of changes in
A) the level of real disposable income. B) the interest rate. C) the price level. D) wages.