The Paris First National Bank now has $1,000 in demand deposits. By making an $800 loan to Matt Taylor, an aspiring entrepreneur, the bank now has

The income effect of a decrease in the price of legal services, a normal good, results in

A) an increase in the demand for legal services. B) an increase in the quantity of legal services demanded. C) a decrease in the demand for legal services. D) a decrease in the quantity of legal services demanded.

Which of the following will cause consumption, and as a result, aggregate demand, to shift to the right?

a. an optimistic business forecast of future income growth b. increased consumer wealth c. an increase in consumer confidence d. all of the above