One effect of a shrinking economy is

A) an increase in the discount rate.
B) a decrease in the discount rate.
C) an increase in the federal funds rate.
D) a decrease in the federal funds rate.

D

Economics

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Taxation and government spending are examples of fiscal policy tools used to stabilize an economy

Indicate whether the statement is true or false

Economics

For a normal good, the income and substitution effect work in the same direction. For an inferior good, the income and substitution effects work in opposite directions

Does this imply that the demand curve for an inferior good is upward sloping? Explain.

Economics