This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If the demand for fast-food rises as a result of lower income, we would say fast-food is an inferior ... (Read 150 times)

CharlieWard

  • Hero Member
  • *****
  • Posts: 578
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


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aidanmbrowne

  • Sr. Member
  • ****
  • Posts: 305
Reply #1 on: Jun 30, 2018
Answer to Question 1

True

Answer to Question 2

d


CharlieWard

  • Hero Member
  • *****
  • Posts: 578
Reply #2 on: Jun 30, 2018
Thank you :)


aidanmbrowne

  • Sr. Member
  • ****
  • Posts: 305
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Psoriasis, lower extremities Psoriasis, lower extremities
lower digestive lower digestive
Ten Leading Causes of Death in High-Income Countries, 2008 Ten Leading Causes of Death in High-Income Countries, 2008
Food webs show feeding relationships and energy flow Food webs show feeding relationships and energy flow
Food: Made Over Made Better Food: Made Over Made Better
Red, fleshy fruits of hawthorn plants (Crataegus) are an important food for cedar waxwings (Bombycil Red, fleshy fruits of hawthorn plants (Crataegus) are an important food for cedar waxwings (Bombycil
Video: How does asthma work?And How do you treat asthma?

For a complete list of videos, visit our video library