If your income stays the same and the price level increases, you will buy fewer goods and services due to the
A. interest rate effect.
B. real-balance effect.
C. open economy effect.
D. aggregate balances effect.
Answer: B
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How much is induced consumption?
C = $6.4 trillion Disposable income = $8 trillion Autonomous consumption = $4 trillion
Answer the next question based on the demand and cost schedules for a monopolistically competitive firm given in the table below.PriceQuantity DemandedTotal CostOutput$201$101182202163293144364125405106426What will be the economic profit or loss for this monopolistically competitive firm at the profit-maximizing level of output?
A. +$20 B. +$10 C. -$15 D. +$28
In 2008, $1 Canadian cost 0.56 British pounds and in 2010, it cost 0.63 British pounds. Therefore, 1 British pound was worth _____ Canadian in 2008 and _____ Canadian in 2010
a. $1.79; $1.59 b. $1.72; $1.51 c. $1.87; $1.65 d. $1.97; $1.75
What is the difference between economic profit and accounting profit?
What will be an ideal response?