As gardeners tried to make their yards places for quiet retreat, sales of backyard fountains increased. What factor affecting demand does this illustrate?
a. income
b. market size
c. consumer expectation
d. consumer taste
Ans: d. consumer taste
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Since interest rates for borrowing are usually higher than interest rates for savings, the intertemporal budget constraint has an inward kink for individuals that earn income now and in the future.
Answer the following statement true (T) or false (F)
A Fed purchase of gold, SDRs, a deposit denominated in a foreign currency or any other asset is just an open market ________ of these assets, ________ the monetary base
A) purchase; raising B) sale; raising C) purchase; lowering D) sale; lowering
Using the table above, and assuming no bequest, what amount of consumption is chosen in period 1, if the consumer wants consumption in the two periods to be equal?
If initial wealth is $40,000, what amount of consumption is equal over the two periods?
If the price elasticity of supply is equal to 1, we would say the supply of the item is
A) unit elastic. B) inelastic. C) elastic. D) perfectly elastic.