Refer to the diagram. If the budget line shifts from ab to ac, the:
A. price of K has increased.
B. consumer's money income has fallen.
C. price of K has decreased.
D. price of J has increased.
A. price of K has increased.
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Suppose the United States is in the midst of a recession. What will happen to the value of the mpi?
A) It will decrease. B) It will fall to zero. C) It will not change. D) It will increase.
If debit cards become more widely used by consumers and businesses, which of the following is most likely to happen?
a. Currency holdings will remain the same, but the M1 money supply will fall. b. The amount of currency held by the public will increase. c. Less money will be held as currency and more money will be held in bank accounts, which will increase the reserves of banks unless the Fed takes offsetting actions. d. The money supply will be unaffected because debit card expenditures are considered the equivalent of cash.
If bundles A, B, and C lie on the same indifference curve, then:
A. A ~ B ~ C. B. B > C > A. C. A > B > C. D. A ~ B > C.
In college you practically existed on instant noodles, but now you earn $95,000 a year. You never want to see instant noodles again. We can safely conclude that you consider instant noodles to be a(n)
A. normal good. B. complementary good. C. inferior good. D. luxury.