The wealth effect refers to
A) the impact of household real wealth on consumption, savings, and the IS curve.
B) the impact of household real wealth on money, prices, and the LM curve.
C) the impact of household real wealth on short term and long term interest rates.
D) the impact of household real wealth on aggregate supply curve.
A
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"The marginal social cost of burning garbage in Houston is the sum of the marginal private cost and the marginal external cost." Is this assertion correct or incorrect?
What will be an ideal response?
During an election year, the federal government would mostly likely increase _____
a. tax rates b. interest rates c. the discount rate charged to commercial banks d. the minimum reserve requirement of commercial banks e. government purchases of goods and services