Demand is determined by how much suppliers are willing and able to produce.
Answer the following statement true (T) or false (F)
False
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Which of the following is NOT a fixed-payment loan?
A) mortgage B) car loan C) student loan D) corporate bond
An increase in the desired stock of housing would be caused by ________
A) an increase in household formation B) higher residential consumption C) a decrease in expected future income D) an increase in home prices
Kristie currently spends her $1,000 a week income as follows: $500 on X, $300 on Y, and $200 on Z. Her mother then gives her a $100 bill and tells her to use it to buy more Z. Kristie actually takes the $100 her mother gave to her, adds $40 to the $200 she usually spends on Z, and buys $240 worth of Z. Did Kristie's mother's $100 go to buy only Z?
A) Yes, because Kristie used her mother's actual $100 bill to buy Z. B) No, because if it had, Kristie would have bought $300 worth of Z. Some of Kristie's mother's money went for what Kristie had next on her list of desired purchases. C) Yes, since Kristie bought $240 worth of Z, and the amount of money her mother gave her is less than $240. D) There is not enough information to answer the question.
The tendency of changes in asset prices to affect spending on consumption goods is called the ________ effect.
A. multiplier B. wealth C. income D. substitution