As real Gross Domestic Product (GDP) decreases, people hold
A) about the same amount of money since that has been enough in the past.
B) less money because they will want to collect interest.
C) more money because they will want to increase the amount of savings.
D) less money since they will make fewer purchases.
D
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Which of the following is NOT one of the major problems with expanding the EU?
A) Expansion has become a more difficult task because of the unwillingness of the eastern and central European countries to change. B) The programs that target EU expenditures could be stretched thin by the addition of countries with much lower incomes. C) The governance structure of the EU had to be changed to avoid becoming unwieldy and ineffective. D) The EU may be faced with an unstable eastern border with huge worker migratory flows if the transition economies fail. E) Most central and eastern European countries have large agricultural sectors and extending subsidies to these countries would entail an enormous flow of funds given the Common Agricultural Policy.
Refer to the above table. Suppose the price of Y rises from $18 to $20. What is the cross price elasticity of demand between Y and Z?
A) -1.7273 B) -1.1176 C) -0.8947 D) +1.7273