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 303 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?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

The heart is located in the center of the chest, with part of it tipped slightly so that it taps against the left side of the chest.

Acid Fast Stain Acid Fast Stain
Pressure is a result of the atmosphere’s mass. Pressure is a result of the atmosphere’s mass.
Tricks for your baby to eat food Tricks for your baby to eat food
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
A very small sampling of organisms in an arctic food web on land. A very small sampling of organisms in an arctic food web on land.
How to impress a choosy female: Male Hangingfly Bearing Food How to impress a choosy female: Male Hangingfly Bearing Food
Video: Non-specific disease resistance mechanisms & Skin's defense barriers

For a complete list of videos, visit our video library