Something is a normal good if
A) the demand for it decreases when its price rises.
B) the demand for it decreases when its price falls.
C) the demand for it increases when income rises.
D) the demand for it increases when income falls.
C
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Keynesians, monetarists, and classical economists all agree that the transactions demand for money is the demand for money by households for
a. precautionary purposes b. spending purposes c. liquidity purposes d. saving purposes e. investment purposes
The legal reserve requirement is the
a. actual amount of reserves that banks must hold b. excess amount of reserves that a bank must hold c. minimum amount of reserves the Fed requires a bank to hold d. total amount of reserves that banks hold at all times e. maximum amount of reserves that banks can hold to remain liquid