The difference between a price decrease and an increase in income is that
A. An increase in income does not affect the slope of the budget line, while a decrease in price does change the slope.
B. A price decrease leaves real income unchanged, while an increase in income increases real income.
C. A price decrease does not affect the consumption of other goods, while an increase in income does.
D. A price decrease decreases real income, while an increase in income increases real income.
Answer: A
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If the demand for computers increases as consumers' incomes rise, then computers are:
A. a normal good. B. a complementary good. C. an inferior good. D. a substitute good.
If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the excess reserves-checkable deposit ratio is
A) 0.001. B) 0.10. C) 0.01. D) 0.05.
If profits are reinvested in the corporation, then
A) payments made to bondholders will be less. B) there are fewer funds available to distribute to stockholders. C) the company will sell more bonds in order to pay dividends to stockholders. D) the high profits indicate that common stockholders will get larger dividends than normal.
The Drinking Water State Revolving Fund (DWSRF)
a. was established under the Safe Drinking Water Act of 1974 b. received no additional funding from the American Recovery and Reinvestment Act c. initially authorized $1 billion per year for infrastructure improvements d. all of the above