As disposable income increases, consumption:
A. and saving both increase.
B. and saving both decrease.
C. decreases and saving increases.
D. increases and saving decreases.
A. and saving both increase.
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The flow of ________ increases the stock of ________.
A. money; income B. saving; wealth C. investment; profits D. consumption; income
In the above, which figure(s) show(s) a relationship between the variables that is always negative?
A) Figure A only B) Figure D only C) Figures A and C D) Figures A, C, and D E) Figure B only
The income elasticity of demand for used cars is less than zero, so used cars are
A) an inferior good. B) a normal good. C) an inelastic good. D) a perfectly inelastic good. E) a substitute good.
The merchandise trade balance does not include
a. exports of refrigerators b. imports of automobiles c. exports of agricultural products d. shipping and insurance costs e. imports of food items with heavy tariffs