Saving $100 will:
A. increase wealth by $100 only if the $100 is used to repay a debt.
B. decrease wealth by $100.
C. increase wealth by $100.
D. increase wealth by $100 only if the $100 is used to purchase an asset.
Answer: C
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After the price of Revlon nail polish increased, Jen stopped buying Revlon nail polish and started buying a cheaper brand of nail polish instead. This is called:
A. a decrease in the seller's reservation price. B. the income effect of a price change. C. the substitution effect of a price change. D. a decrease in the buyer's reservation price.
Are national forests public goods? Explain.
What will be an ideal response?
Net exports is a positive number in the national income accounts when
A. imports exceed exports.
B. exports exceed imports.
C. national income exceeds personal income.
D. capital consumption exceeds net investment.
"Leaning against the wind" is exemplified by a(n)
a. tax increase when there is a recession. b. decrease in the money supply when there is a recession. c. increase in government expenditures when there is a recession. d. All of the above are correct.