What happens to the saving curve when the consumption curve shifts? What happens to the saving and consumption curves when taxes are changed? Explain
The answer depends on what caused the consumption curve to shift. If changes in real asset or money
holdings, expectations of future price changes, or changes in credit or interest rates caused the consumption
curve to shift upward, then the saving curve must shift downward. But a change in taxes will shift the
saving curve and the consumption curve in the same direction. This is because people will pay a higher tax
bill by cutting back on consumption and saving, and they will respond to a lower tax bill by spending and
saving more.
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Suppose the CPI was 104 in 1967, and suppose currently the CPI is 390 . According to the CPI, $10 in 1967 purchased the same number of goods and services as
a. $28.88 purchases today. b. $37.50 purchases today. c. $42.64 purchases today. d. $104.00 purchases today.
A discovery that increases wheat yields per acre hurts farmers by increasing supply and lowering their total revenues
a. True b. False Indicate whether the statement is true or false
In what year did the technology stock bubble burst?
A. 2000 B. 2006 C. 2007 D. 2008
In April, market analysts predict that the price of titanium will fall in May. What happens in the titanium market in April, holding everything else constant?
A) The quantity demanded and the quantity supplied increase. B) The supply curve shifts to the right. C) The supply curve shifts to the left. D) The demand curve shifts to the right.