The price of one good compared to the price of other goods refers to:
A. Relative price.
B. Inflation.
C. Deflation.
D. The income effect.
A. Relative price.
You might also like to view...
Discounting involves dividing next-period income by ________
A) one plus the real rate of interest B) the nominal rate of interest C) current income D) the real rate of interest
Customer discrimination is illegal in the United States
a. True b. False Indicate whether the statement is true or false
Suppose you are covered under health insurance or belong to a Health Maintenance Organization (HMO), and you are insured against all or most of the costs of visits to the doctor. As a result you are likely to make greater use of medical services of all kinds. This tendency of people with insurance to change their behavior in a way that leads to more claims against the insurance company is called
a. adverse selection. b. moral hazard. c. screening d. signaling.
If the marginal propensity to consume (MPC) is 0.60, what is the spending multiplier?
A. 0.4. B. 0.6. C. 2.5. D. 6.0.