Refer to the above figures with consumption schedules in figure (A) and saving schedules in figure (B), which correspond to each other across different levels of disposable income. If, in figure (A), consumption shifts from A 2 to A 3 because of a change in taxes, then in figure (B) line:
A. B 2 will shift to B 3
B. B 1 will shift to B 2
C. B 2 will shift to B 1
D. B 3 will shift to B 2
A. B 2 will shift to B 3
Economics
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The investment function is represented by
A) an inverse relationship between the interest rate and the value of planned investment. B) the direct relationship between the interest rate and the value of planned investment. C) the indirect relationship between taxes and government spending. D) the direct relationship between taxes and government spending.
Economics
The final consumer demand for chicken (normal good) in China will NOT shift if
A. consumer income decreases. B. more consumers are present in the market. C. the price of chicken decreases. D. either A or B occurs.
Economics