What best describes what happens to the share of income spent on food as income increases?

Max Shreck, an accountant, quit his $80,000-a-year job and bought an existing tattoo parlor from its previous owner, Sylvia Sidney. The lease has five years remaining and requires a monthly payment of $4,000. The lease

A) is a variable cost of operating the tattoo parlor. B) is an implicit cost of operating the tattoo parlor. C) is a fixed cost of operating the tattoo parlor. D) is part of the marginal cost of operating the tattoo parlor.

When the Fed reduces the money supply, it will cause a decrease in aggregate demand because:

a. real rates will rise, lowering business investment and consumer spending. b. the dollar will depreciate on the foreign exchange market, leading to an increase in net exports. c. lower interest rates will cause the value of assets (for example, stocks) to rise. d. the national debt will increase, causing consumers to reduce their spending.