If consumption has fallen, which of the following could be TRUE?
a. Taxes have fallen.
b. Income has fallen.
c. Taxes and income have fallen.
d. Disposable income has risen.
Answer: b. Income has fallen.
You might also like to view...
If the average productivity of Canadian firms is rising more quickly than the average productivity of Indian firms, which of the following would you expect to see?
A) an increase in the value of the rupee relative to the dollar B) a decrease in the prices of Indian products C) a decrease in the quantity demanded of Indian products relative to Canadian products D) an increase in the quantity demanded of Indian products relative to Canadian products
Suppose you obtain a fixed rate mortgage during a period of relatively high inflation. During the next ten years, inflation falls. Are you a winner or a loser due to inflation? Explain why
What will be an ideal response?