Why does a tax change affect aggregate demand?
a. A tax change alters saving by an equal amount.
b. A tax change alters imports and net exports.
c. A tax change alters government spending by an equal amount.
d. A tax change alters disposable income and consumption spending.
D
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The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management decides to offer controlled rent but force the tenants to rent furniture from them. This is an example of
a. Tying b. Bundling c. Exclusion d. Fraud
Which of the following is used to illustrate an independent relationship between two variables?
A. An upward-sloping curve B. A downward-sloping curve C. A hill-shaped curve D. A horizontal or vertical line