Author Question: If macaroni and cheese is an inferior good, an increase in income will A) not affect the demand ... (Read 123 times)

Sportsfan2111 · **on:** Jun 29, 2018

If macaroni and cheese is an inferior good, an increase in income will

A) not affect the demand for macaroni and cheese.
B) decrease the demand for macaroni and cheese.
C) increase the demand for macaroni and cheese.
D) create no income effect.

Question 2

According to the intertemporal substitution effect, when the price level rises and other things remain the same

A) the interest rate falls.
B) the interest rate rises.
C) the quantity of money increases.
D) government taxes rise.