The income effect from a fall in the price of a gallon of gasoline is shown in the above figure by the movement from
A) point A to point C.
B) point A to point B.
C) point B to point C.
D) point A to point B and then to point C.
C
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If the production of a particular good causes a negative externality, would the equilibrium quantity in a competitive market be less than the efficient quantity or would it be greater than the efficient quantity?
What will be an ideal response?
When a good is more broadly defined (for example, Starbucks Caramel Macchiato versus coffee),
a. it will have more available substitutes so demand will be more elastic. b. it will have more available substitutes so demand will be less elastic. c. it will have fewer available substitutes so demand will be more elastic. d. it will have fewer available substitutes so demand will be less elastic.
An increase in the money supply by the Federal Reserve is likely to increase
I. net exports. II. the exchange rate. III. interest rates. IV. aggregate demand. A) I, II, III, and IV B) I, II, and IV C) I, III, and IV D) I and IV
Which of the following is not a financial intermediary?
A. The New York Stock Exchange B. A bank C. An insurance company D. A mutual fund