What assumption is used when making demand curves?
a. All economic factors remain constant except price.
b. All consumers lie about their purchasing habits.
c. Inflation always causes product prices to rise.
d. Availability of product is the most important variable.
Ans: a. All economic factors remain constant except price.
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In the market for loanable funds the price of the funds exchanged is
A) the price of bonds. B) the volume of bonds purchased. C) the volume of bonds sold. D) the interest rate.
The life-cycle hypothesis predicts what consequence of aging of the overall population? [That is, an increase in T, relative to R & L.]
A) a decrease in the marginal propensity to consume out of wealth B) an increase in aggregate saving C) a decrease in the marginal propensity to consume out of income D) an increase in aggregate wealth