If people expect prices to fall in the future,
A. their consumption function in the present will shift downward.
B. their consumption function in the present will shift upward.
C. they will decrease their current levels of consumption by moving down along their consumption functions.
D. they will increase their current levels of consumption by moving up along their consumption functions.
Answer: D
You might also like to view...
In terms of the production possibilities diagram, the principle of increasing cost simply asserts that the frontier is
A. downward sloping. B. upward sloping. C. bowed inward. D. bowed outward. E. undefined, because no market will exist in this case.
Frank's Burgers employs workers in a competitive market. It currently has 15 employees. The marginal revenue product of the 15th worker hired is $8.50 per hour. The market equilibrium wage is $10 per hour
Is this firm maximizing profit? Explain.
You have $1,000 in your checking account at Generous Savings and Loan (GSL). GSL holds $300 of your money in reserve and makes a $700 student loan to Wilma, who promises to repay the loan with interest. Wilma now has an additional $700 in her checking account. By how much has the money supply M1 increased?
a. $2,000 b. $1,700 c. $1,000 d. $700
A job candidate refusing to take a drug test for a potential employer is an example of:
A. principles-based behavior. B. screening. C. building a reputation. D. signaling.