The wealth effect is shown graphically as a:
A. shift of the consumption schedule.
B. movement along an existing consumption schedule.
C. shift of the investment schedule.
D. movement along an existing investment schedule.
A. shift of the consumption schedule.
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If consumers expect that the price of pretzels will decrease next week, what would happen today?
A) Demand today for pretzels would decrease. B) Demand today for pretzels would increase. C) Demand today for pretzels would be unaffected. D) Supply today of pretzels would decrease.
Fannie Mae and Freddie Mac are important in the mortgage industry because:
a. They regulate banks and make sure their underwriting standards meet strict standards. b. They purchase mortgages, bundle them, insure them, and then sell mortgage-backed securities to investors. c. Their mandate is to develop a secondary market in global mortgage markets. d. They originate mortgages, purchase them, bundle them, insure them, and then sell mortgage-backed securities to investors. e. None of the above.
If a hotel room priced at 120,000 Venezuela bolivar per night can be purchased for 80 U.S. dollars, the exchange rate is:
A. 9,600 bolivar per dollar. B. 1,500 dollars per lira. C. 1,500 bolivar per dollar. D. .00066 bolivar per dollar.
________ is an example of a public good.
A. A medical service B. An automobile C. A restaurant meal D. National defense