If consumption when young and when old are both normal goods, an increase in the interest rate ?

Related Mcqs:

If leisure is a normal good, an increase in the wage ?

A. will always increase the quantity of labor supplied B. will increase the amount of labor supplied if the substitution effect outweighs the income effect C. will increase the amount of labor supplied if the income effect outweighs the substitution effect D. will always decrease the amount of labor supplied...

The consumer’s optimal purchase of any two goods is the point where ?

A. the budget constraint crosses the indifference curve B. the two highest indifference curves cross C. the consumer reaches the highest indifference curve subject to remaining on the budget constraint D. the consumer has reached the highest indifference curve...

If an increase in a consumer’s income causes the consumers to decrease her quantity demanded of a good, then the good is ?

A. a substitute good B. a normal good C. a complementary good D. an inferior good...

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 Suppose that the price of a pair of socks falls from €5 to €2 The substitution effect is represented by the movement from point ?

A. Z to point X B. X to point X C. X to point Z D. Y to point X...

Refer to Exhibit 4, Suppose that the consumer must choose between buying socks and belts Also suppose that the consumer’s income is €100 A pair of socks is ?

A. an inferior effect B. a Geffen good C. a normal good D. none of these answers...