An income effect
A. is measured as the change in prices over time.
B. is not possible when people are unemployed.
C. requires interest rates to remain constant.
D. is the change in the quantity demand due to the fact that real income changes when prices
change.
A. is measured as the change in prices over time.
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Which of the following is an incorrect statement?
a. If for an activity MR>MC, then do more of it b. An incentive compensation scheme that increases MR will increase effort c. Fixed fees have no effect on effort d. Average cost is relevant to an extent decision
When the U.S. price level increases, economists predict a:
A. movement down along the aggregate demand curve. B. shift straight up of the aggregate demand curve. C. shift to the right of the aggregate demand curve. D. decrease in expenditure.
"Any additional increases in government spending should be for defense," is ________ statement about ________ policy.
A. positive; monetary B. normative; monetary C. positive; fiscal D. normative; fiscal
Answer the next question based on the following balance sheet for the First National Bank. Assume the reserve ratio is 15 percent.AssetsLiabilities & Net WorthReserves$50,000 Checkable Deposits$120,000Loans75,000 Stock Shares130,000Securities25,000 Property100,000?Refer to the above data. This commercial bank has excess reserves of:
A. $15,000. B. $27,000. C. $18,000. D. $32,000.