Which component of aggregate demand is involved in the wealth effect caused by a price level change?
a. government purchases
b. investment
c. consumption
d. disposable income
c. consumption
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Because the U.S. poverty line is an absolute measure rather than a relative one, the official U.S. poverty rate:
A. increased steadily when there was economic growth that raised the incomes of low-income families. B. fell steadily when there was economic growth that raised the incomes of low-income families. C. fell steadily when there was economic growth that caused inequality to grow among the population. D. increased steadily when there was economic growth that caused inequality to decline across the population.
Scarcity impels an individual to make choices
a. True b. False Indicate whether the statement is true or false
Assume that a one-year Malaysian bond yields 10 percent interest and that the dollar return on maturity is 5 percent. If the exchange rate at maturity is $1 = MYR 4.00 (Malaysian ringgit), what was the exchange rate at the time the bond was purchased?
a. $1 = MYR 4.2 b. $1 = MYR 3.8 c. $1 = MYR 3.6 d. MYR 1 = $0.26 e. MYR 1 = $0.4
A firm's total revenue is simply the price of its product multiplied by the quantity sold
a. True b. False Indicate whether the statement is true or false