The positive slope of the consumption function indicates that
a) consumers spend less out of each extra dollar of income
b) the amount of household wealth is subject to change
c) when prices fall consumers spend more
d) consumers increase their total consumption expenditure when disposable income increases
d) consumers increase their total consumption expenditure when disposable income increases
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Shelly purchases a leather purse for $400. One can infer that:
A. her reservation price was less than $400. B. she paid too much. C. her reservation price was at least $400. D. her reservation price was exactly $400.
Describe the relationship demonstrated by a production function
What will be an ideal response?
When the dollar depreciates relative to the pound, the pound price of the dollar
A) increases. B) decreases. C) does not change. D) increases or decreases, depending on the amount of the depreciation. E) changes in the next period.
The supply curve for loans to high-risk borrowers is _________ the supply curve for loans to low-risk borrowers.
A. below B. to the right of C. flatter than D. to the left of