If we observe that a consumer's budget constraint has shifted outward, we can assume that the consumer will buy
a. fewer normal goods and more inferior goods.
b. more normal goods and fewer inferior goods.
c. more normal goods and more inferior goods.
d. fewer normal goods and fewer inferior goods.
b
You might also like to view...
The purpose of the restrictive debt covenant that prohibits borrowers from entering into certain types of leases is to
A. ensure a cash shortage does not cause an inability to meet current obligations. B. prevent liquidation of assets through large salary increases of key employees. C. protect the lender by controlling the risk and marketability of the borrower's security investments alternatives. D. limit the amount of fixed-payment obligations.
Which of the following games provides the best way to model price wars?
A) a repeated duopoly game B) a game of chicken C) a sequential entry game in a noncontestable market D) a sequential entry game in a contestable market
If Year 1 is the base year, the real GDP of Year 2 is
A) $800. B) $1050. C) $1900. D) $2400.
If a country is in a major recessionary phase of the business cycle, one can expect that its currency will
a. revalue. b. devalue. c. appreciate. d. depreciate.