The level of consumption _____ as the stock of liquid assets in the hands of consumer rises and it ____ as the level of disposable income rises.
A. rises; rises
B. falls; falls
C. rises; falls
D. falls; rises
A. rises; rises
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A market which consists of many sellers and only one buyer is called a:
A. monopsony. B. monopoly. C. oligopoly. D. monopolistic competitor.
When a price ceiling is imposed below the equilibrium price of a commodity,
a. quantity supplied will be greater than quantity demanded for the good. b. the problem of scarcity will be solved. c. a shortage of the good will develop. d. a surplus of the good will develop.
If the expected future price of a stock is revised downward and all else is equal, today's price of the stock will
A. fall. B. remain unchanged. C. rise. D. adjust to reflect a higher ratio of price to (current) earnings.
Briefly explain the difference between absolute and relative PPP
What will be an ideal response?