Which of the following will not shift the aggregate demand curve to the right?
A. consumers becoming more optimistic about the future
B. an increase in government spending
C. business optimism increases
D. consumers become pessimistic about the future
Answer: D
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What is meant by comparative statics? Explain with an example
What will be an ideal response?
Marking to market involves
A) changing the futures price to the spot price each day. B) engaging in arbitrage so as to reduce the risk involved with futures contracts. C) crediting or debiting the margin account based on the net change in the value of the futures contract. D) updating the futures price after the market closes each day.
How do automatic stabilizers, on both the expenditure and revenue sides of the budget, respond during a recession?
What will be an ideal response?
When the total utility from consuming one good is maximized, marginal utility is
A) maximized. B) minimized. C) zero. D) positive.