When the price of audio books, a normal good, falls, causing your purchasing power to rise, you buy more of them due to
A) the deadweight loss effect. B) the elasticity effect.
C) the income effect. D) the substitution effect.
C
Economics
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Suppose the Fed sells $100 of government securities. If the desired reserve ratio is 20 percent and there is no currency drain, then the quantity of money
A) decreases by $500. B) decreases by $80. C) decreases by $400. D) decreases by $100. E) increases by $100.
Economics
A reliable indicator of a healthy economy is an appreciating currency
a. True b. False
Economics