Consider a graph on which one good Y is on the vertical axis and the only other good X is on the horizontal axis
On this graph the income-consumption curve has a positive slope for low incomes, then it takes a zero slope for a higher income, and then it takes a negative slope for even higher incomes (the curve looks like an arc, first rising and then falling as income increases). This curve illustrates that, for all income levels, A) both X and Y are normal.
B) only Y is normal.
C) both X and Y are inferior.
D) only X is normal.
D
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Explain why the money supply does NOT change when one individual writes a check to another
What will be an ideal response?
Writing in The Wall Street Journal in 2009, economist Jeremy Siegel pointed out that the efficient markets hypothesis
a. was responsible for the financial crisis of 2008-2009. b. was responsible for the Great Depression of the 1930s. c. claims that prices observed in financial markets are always "right.". d. claims that prices observed in financial markets are mostly "wrong.".