An increase in net wealth will:
a. increase consumption and saving at each level of income
b. increase saving and decrease consumption at each level of income.
c. decrease consumption and saving at each level of income.
d. increase consumption and decrease saving at each level of income.
e. have no effect on consumption because consumption is a function of income.
d
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A ____________ exchange rate policy is where the central bank will intervene as needed in the market to keep the currency value from moving rapidly in one direction.
a. soft peg b. floating c. hard peg d. defined
The term cross-price refers to the idea that:
a. the price of one good is affecting the quantity demanded of a different good. b. the demand of one good is affecting the quantity demanded of a different good. c. the price of one good is affecting the quantity supplied of a different good. d. the supply of one good is affecting the quantity demanded of a different good.
The present discounted value of a future payment will increase when the
A. Risk of nonpayment increases. B. Future payment is moved further into the future. C. Opportunity cost of money increases. D. Interest rate decreases.
The amount consumers are willing and able to buy at a particular price during a specified period of time is the
A. demand. B. quantity supplied. C. supply. D. quantity demanded.