Suppose a change in the stock market makes people feel wealthier, increases consumption, and shifts the aggregate-demand curve right. The change in the stock market must have been
a) an increase in stock prices.
b) a decrease in stock prices.
c) the stock market has no effect on wealth and consumption.
d) no change in stock prices.
Ans: a) an increase in stock prices.
Economics
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Suppose that when the price of hamburgers decreases, the Ruiz family increases their purchases of ketchup. To the Ruiz family
A) hamburgers and ketchup and substitutes. B) hamburgers and ketchup are normal goods. C) hamburgers are normal goods and ketchup is an inferior good. D) hamburgers and ketchup are complements.
Economics
Lending abroad represents:
A) a capital outflow. B) a capital inflow. C) positive net savings. D) none of the above.
Economics