Supply and Demand
If demand falls and supply stays the same, equilibrium price will ______, and equilibrium quantity will ______.
If demand falls and supply stays the same, equilibrium price will fall, and equilibrium quantity will fall.
The largest component of C is _______.
The largest component of C is services.
Who is your favorite professor?
Who is Prof. E?
Inventory computerization has tended to reduce inventory levels.
True or False
What is true?
When the demand for money rises, interest rates _______.
When the demand for money rises, interest rates also rise.
As a nation’s income falls, induced consumption ______.
As a nation’s income falls, induced consumption falls. That’s because induced consumption varies directly with income.
Induced consumption is induced by_________________.
What is increases in disposable income?
Each of the following might be used to acquire capital except _______.
What is consuming more?
Equilibrium price is always determined by _______ and _________.
Equilibrium price is always determined by demand and supply.
1 − MPS = ________
1 − MPS = MPC
The wealth effect accounts for some additional consumption when people perceive themselves to be wealthier.
True or False
Inventory investment tends to rise during recessions.
True or False
What is false?
If supply falls and demand remains the same, equilibrium price will ________, and equilibrium quantity will ___________.
If supply falls and demand remains the same, equilibrium price will rise, and equilibrium quantity will fall.
About _______ percent of what Americans spend on consumption is spent on services.
About 64 percent of what Americans spend on consumption is spent on services.
Our consumption spending tends to rise as the stock of liquid assets in the hands of consumers ______ and credit availability ______.
Our consumption spending tends to rise as the stock of liquid assets in the hands of consumers rises and credit availability rises.
Of the big three spending sectors of GDP, the least stable is ________________.
What is Investment?
At equilibrium price, quantity demanded is equal to _________________.
At equilibrium price, quantity demanded is equal to quantity supplied.
When the C line crosses the 45-degree line, saving is equal to ________.
When the C line crosses the 45-degree line, saving is equal to zero.
The average propensity to consume is found by dividing_____________ by _____________.
The average propensity to consume is found by dividing consumption by disposable income.
The two main disadvantages of incorporating are _____________ and ________________.
What are (1) high corporate income taxes and (2) the costs of incorporating.