What happens when consumers in the economy start to spend less, perhaps because they become worried about the future?
A. Savings rises, causing increases in investment that boost GDP.
B. The demand for dollars falls, causing the exchange rate to fall and exports to rise.
C. Prices fall, causing consumers to start spending again.
D. The incomes of other people fall, causing those people to spend less as well.
Ans: D. The incomes of other people fall, causing those people to spend less as well.
Economics
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Refer to the table above. If Jack has an annual income of $40,000, into which tax bracket does he fall?
A) 10% B) 15% C) 23% D) 30%
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Suppose that when price is $10, quantity supplied is 20 . When price is $6, quantity supplied is 12 . The price elasticity of supply is
a. 0.2 b. 0.5 c. 1.0 d. 1.5 e. 2.0
Economics