Which of the following would most likely increase the demand for peanut butter?
What will be an ideal response?
a decrease in the price of jelly, a good that is often used with peanut butter
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If a product constitutes a large portion of a consumer’s income, demand will be more inelastic.
Answer the following statement true (T) or false (F)
According to the permanent income hypothesis, permanent income is to ________ as transitory income is to ________
A) consumption; saving B) certain; hypothetical C) wealth; gambling D) saving; borrowing
If I own a share of stock in IBM, I own
a. only the right to vote in elections of corporate directors b. a claim to a share of IBM's assets and earnings as well as the right to demand annual dividend payments c. the right to demand annual dividend payments as well as the right to vote in elections of corporate directors d. only the right to demand annual dividend payments e. a claim to a share of IBM's assets and earnings as well as the right to vote in elections of corporate directors
The stimulus strategy behind tax cuts will only be effective if Ricardian equivalence:
A. holds, and people increase their spending. B. holds, and people save more. C. fails to hold, and people increase their spending. D. fails to hold, and people save more.