Answer the following questions true (T) or false (F)
1. The income effect results in consumers increasing the quantity of normal goods demanded when the price falls.
2. The demand curve for a Giffen good slopes upward.
3. The only Giffen goods that have been identified so far in the real world are luxury goods.
1. TRUE
2. TRUE
3. FALSE
Economics
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The market system works by getting each person, motivated by his or her own self-interest, to produce products for other people
Indicate whether the statement is true or false
Economics
Three macroeconomic factors that affect the demand for money are:
A. capital, labor, and technology. B. the nominal interest rate, capital, and labor. C. globalization, skill-biased technological change, and labor mobility. D. the nominal interest rate, real income, and the price level.
Economics