As real disposable income increases, consumption expenditures
A) increase by the same amount.
B) increase by a smaller amount.
C) increase by a larger amount.
D) remain constant.
Ans: B) increase by a smaller amount.
Economics
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Suppose that one firm produces a product that results in negative external costs to society. This information suggests that
A) resources are under-allocated to the firm. B) the equilibrium market price of the product includes the external costs borne by society. C) resources are over-allocated to the firm. D) at the market price, quantity demanded is less than quantity supplied.
Economics
M1 money includes all but which one of the following?
a. Checkable deposits. b. Savings accounts. c. Paper money. d. Coins.
Economics