An increase in confidence will cause
A. AS to decrease (move up and to the left).
B. AD to decrease (move to the left).
C. AS to increase (move down and to the right).
D. AD to increase (move to the right).
Answer: D
Economics
You might also like to view...
Under fair-returns price regulation:
A) deadweight loss is likely to be maximized. B) deadweight loss is likely to be minimized. C) firms are less likely to innovate because they earn zero profits. D) firms are more likely to innovate because they earn positive profits.
Economics
If the MPC = .75, the spending multiplier is:
a. 4. b. 5. c. 1.33. d. 1.20. e. .25.
Economics