An increase in consumer wealth will decrease aggregate demand.
Answer the following statement true (T) or false (F)
False
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Exchange rates and banking systems are often the variables through which the contagion effects of a crisis are spread from one country to another
Indicate whether the statement is true or false
If, at the point where MR = MC, the firm incurs losses, in the short run the firm should:
a. shut down. b. increase output. c. decrease output. d. continue at its current output if P > AVC. e. continue at its current output if P > ATC.
A balance-of-payments surplus for the United States can be corrected by
A. Increasing quotas on foreign goods. B. Reducing tariffs on foreign goods. C. Subsidizing U.S. exports. D. Increasing U.S. taxes.
Suppose you learn that in 1900, households spent about 40 percent of their budget on food, and today, they spend about 10 percent of their budget of food. All else equal, this suggests that the price elasticity of demand for food:
A. is probably negative. B. is probably higher now than it was in 1900. C. is probably lower now than it was in 1900. D. has always been very high.