Which of the following increases demand for a good
A) a rise in the price of a complement
B) the expectation that future income will be higher
C) an increase in income, assuming the good is an inferior good
D) a decrease in the number of buyers
E) a fall in the price of a substitute
Answer: B) the expectation that future income will be higher
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Interest is to saver as
A) interest is to debtor. B) profit is to entrepreneur. C) tuition is to student. D) commission is to committee.
A government budget deficit affects the supply of loanable funds, rather than the demand for loanable funds, because
a. in our model of the loanable funds market, we define "loanable funds" as the flow of resources available to fund private investment. b. in our model of the loanable funds market, we define "loanable funds" as the flow of resources available from private saving. c. markets for government debt are fundamentally different from markets for private debt. d. of our assumption that the economy is closed.
U.S. military use of steel is nearly half of total U.S. steel production.
Answer the following statement true (T) or false (F)
An example of an increase in gross private domestic investment spending that also increases Gross Domestic Product (GDP) is when
A. a farmer buys a used tractor. B. inventories of new cars accumulate on the lots of car dealers. C. a family sells its home because of a transfer. D. government increases spending on infrastructure.