With a downsloping demand curve and an upsloping supply curve for a product, an increase in consumer income will:
A. decrease equilibrium price and quantity if the product is a normal good.
B. have no effect on equilibrium price and quantity.
C. reduce the quantity demanded but not shift the demand curve.
D. increase equilibrium price and quantity if the product is a normal good.
Answer: D
You might also like to view...
If aggregate planned expenditures are less than real GDP, then
A) inventories increase above their planned levels and businesses increase their production. B) unplanned inventory changes equal zero. C) inventories decrease below their planned levels and businesses increase their production. D) inventories increase above their planned levels and businesses decrease their production. E) there is no equilibrium level of real GDP.
Refer to the information provided in Figure 1.3 below to answer the question(s) that follow.
Figure 1.3Refer to Figure 1.3. At Point A, what is the value of Y?
A. 10 B. 12 C. 15 D. indeterminate from this information
Persistent current account deficits for the United States have
A) increased government budget deficits. B) decreased investment in new plant and equipment. C) slowed economic growth. D) None of the above are correct.
Fannie Mae and Freddie Mac are important in the mortgage industry because:
a. They regulate banks and make sure their underwriting standards meet strict standards. b. They purchase mortgages, bundle them, insure them, and then sell mortgage-backed securities to investors. c. Their mandate is to develop a secondary market in global mortgage markets. d. They originate mortgages, purchase them, bundle them, insure them, and then sell mortgage-backed securities to investors. e. None of the above.