A reduction in current consumption to pay for the investment in capital intended to increase future production is known as the:
A. consumption effect.
B. substitution effect.
C. investment trade-off.
D. income effect.
C. investment trade-off.
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For a monopolistically competitive firm, the demand curve
A) is a horizontal line. B) has a positive slope. C) is vertical. D) has a negative slope. E) is the same as the marginal revenue curve.
Refer to Figure 6.5. By how many hours does leisure change as a result of the income effect of the wage change?
A. 2
B. 3
C. 4
D. 5
The precautionary demand for money
a. varies inversely with the income level b. varies inversely with the price level c. is used as insurance against unexpected needs d. states that nominal income must exceed real income e. is a classical concept in monetary theory
Average hours worked per week have ____ since the early 1900s
a. declined by almost 7 percent b. risen by almost 15 percent c. risen by almost 7 percent d. declined by almost 35 percent