An Inferior Good Is One for Which Demand Increases as

question 118

Multiple Choice

An inferior good is one for which demand increases as

• A)price decreases
• B)price increases
• C)income increases
• D)income decreases
• E)the price of a related good decreases

---

Definitions:

Goods Exports

The act of sending domestically produced goods to another country for sale or trade.

Current Account

A country's transactions with the rest of the world, including goods, services, income, and current transfers.

Net Inflow

Net inflow refers to the total incoming resources or capital minus the outgoing resources or capital in a particular time period.