Multiple Choice
What is the wealth effect?
A) The tendency for many individuals to copy the consumption patterns of the wealthy.
B) The tendency for increases in wealth to lead to increases in savings.
C) The tendency for increases in wealth to lead to increases in consumption.
D) The tendency for the wealthy to willingly share their good fortune with the less well off.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: A shift in income distribution from wealthy
Q3: What is the relationship between the business
Q4: Those who currently have no savings and
Q5: Consumer debt as a percentage of national
Q6: The availability of credit makes an economy
Q8: Why consumers tend to purchase less if
Q9: How do banks create money?<br>A) Banks print
Q10: Assume that the Federal Reserve sets a
Q11: What is the prime rate?<br>A) It is
Q12: Assume that the Federal Reserve sets a