What is an accurate implication resulting from an increase in income?
A) an increase in exchange rate
B) a decrease in exchange rate
C) a decrease in consumption
D) a decrease in output
E) an increase in consumption
E
You might also like to view...
The above figure illustrates the market for corn. If point "a" represents the original equilibrium and point "b" the new equilibrium, which of the following could have caused the change?
A) a decrease in the number of corn growers B) a decrease the price of wheat, a substitute in production for corn C) an increase in the cost of the seed used to grow the corn D) a decrease in buyers' incomes if corn is an inferior good E) an increased belief among buyers that corn is healthy
Suppose that product prices start rising but nominal wages do not. In that case,
A. real wages will fall and firms will want to produce more because doing so will be profitable. B. real wages will rise and firms will want to produce more because doing so will be profitable. C. there will be a surplus of goods and services produced. D. there will be a shortage of goods and services produced.