If consumption when young and when old are both normal goods, an increase in the interest rate ?
A. will always increase the quantity of saving
B. will always decrease the quantity of saving
C. will increase the quantity of saving if the substitution effect outweighs the income effect
D. will increase the quantity of saving if the income effect outweighs the substitution effect
If income where to double and prices were to to double the budget line would ?
A. stay the same
B. rotate inward
C. shift outward in a parallel fashion
D. rotates outward
E. shift inward in parallel fashion
A. an inferior effect
B. a Geffen good
C. a normal good
D. none of these answers
A. Z to point X
B. X to point X
C. X to point Z
D. Y to point X
A. a substitute good
B. a normal good
C. a complementary good
D. an inferior good
A. rises
B. stays the same
C. could rise or fall depending on the relative prices of the two goods.
D. falls