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Author Question: If the demand for fast-food rises as a result of lower income, we would say fast-food is an inferior ... (Read 246 times)

CharlieWard

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on: Jun 30, 2018
If the demand for fast-food rises as a result of lower income, we would say fast-food is an inferior good.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Ben N. Jerry prefers to keep his 10,000 retirement savings buried in the backyard. After an increase in the price level, Ben reduces the amount of goods and services he wants to purchase. Ben's rationalization, that now his retirement savings won't buy as much, is consistent with which explanation of the aggregate demand curve's negative slope?
 a. the interest rate effect
 b. the open economy effect
  c. the inflation effect
 d. the wealth effect


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aidanmbrowne

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Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

d


CharlieWard

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Reply #2 on: Jun 30, 2018
Thank you :)


aidanmbrowne

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Reply #3 on: Jun 30, 2018
Happy to help you


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