A sudden decrease in consumers' wealth-resulting, for example, from a stock market crash-would initially cause a(n)
a. downward movement along the consumption function.
b. downward shift of the consumption function.
c. upward movement along the consumption function.
d. upward shift of the consumption function.
b
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The engineering approach to estimating incremental environmental costs
a. depends on expert input and is based on least-cost available technology b. obtains estimates of abatement costs directly from polluting sources c. relies on surveys to find the implicit costs of pollution abatement d. is also known as the physical linkage approach
Poverty rated tend to be higher than average for:
a. those 65 years or older b. those under 18 years c. both of the above d. neither of the above
What happens when the dollar price of euros changes from $1.00 to $2.00?
a. European products become relatively cheaper to U.S. consumers.
b. A euro becomes worth $0.50.
c. The quantity of euros demanded by U.S. consumers decreases.
d. The U.S. dollar becomes stronger compared to the euro.
A bagel cost $1 in New York and 0.5 euros in Paris. If the real exchange rate is one-half of a New York bagel for a Parisian bagel, how many euros should you receive in exchange for one dollar?
A. 1.5 B. 0.1 C. 2 D. 0.25