If a third party pays a larger and larger share of the purchasing price of a good, economic theory indicates that
a. the total expenditures (including those made by the third party) on the good will decline.
b. the demand for the good will decrease.
c. consumers will have a stronger incentive to economize on their use of the good.
d. suppliers will have less incentive to provide the good at low prices.
D
Economics
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The funds used to purchase capital goods are called
A) investment. B) savings. C) financial capital. D) dividends and interest.
Economics
Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 cash deposit and immediately makes a $100 loan, its demand deposits, before any checks on its accounts are actually written, are
a. $1,000 b. $1,100 c. $900 d. $990 e. $110
Economics