According to the law of demand, when the price of a BMW or a Gucci purse increases, the quantity demanded of these goods will also increase because consumers consider them prestigious
a. True
b. False
Indicate whether the statement is true or false
False
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Describe the policies a nation would follow to correct a current account deficit. What are the primary purposes of each type of policy?
What will be an ideal response?
The national income accounts for the United States are prepared by the
a. Bureau of Labor Statistics. b. U.S. Department of Commerce, Bureau of Economic Analysis. c. Federal Reserve Board. d. president of the Council of Economic Advisors.
Higher interest rates as a result of deficit spending:
A. increase the wealth of future generations. B. crowd out private investment. C. ultimately has a positive impact on productivity gains and? society's standard of living. D. raise growth in investment spending.
For a monopolistic competitor:
A. P = MC in long-run equilibrium. B. P = MR in long-run equilibrium. C. P > ATC in long-run equilibrium. D. P = ATC in long-run equilibrium.