Which of the following economic changes will decrease household expenditures?
a. Population growth
b. Lower income taxes
c. An appreciation of the domestic currency
d. Increased consumer confidence
e. A higher domestic price level
e
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In the above table, dissaving occurs at every level of income below
A) $5,000. B) $7,000. C) $10,000. D) $8,000.
Harry produces 2 balloon rides and 4 boat rides an hour. Harry could produce more balloon rides but to do so he must produce fewer boat rides. Harry is ________ his production possibilities frontier
A) producing inside B) producing on C) producing outside D) producing either inside or on
Suppose chocolate-dipped strawberries are currently selling for $30 per dozen, but the equilibrium price of chocolate-dipped strawberries is $20 per dozen. We would expect a
a. shortage to exist and the market price of chocolate-dipped strawberries to increase. b. shortage to exist and the market price of chocolate-dipped strawberries to decrease. c. surplus to exist and the market price of chocolate-dipped strawberries to increase. d. surplus to exist and the market price of chocolate-dipped strawberries to decrease.
Contractionary fiscal policy would be most effective in decreasing inflation when
A. the marginal propensity to consume is low. B. investment spending is insensitive to interest rates. C. the economy has a high marginal tax rate. D. investment spending is sensitive to interest rates.