Preferences Depend on

question 420

Multiple Choice

Preferences depend on

• A) income but not relative prices.
• B) relative prices but not income.
• C) neither relative prices nor income.
• D) both relative prices and income.

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Definitions:

Quantity Of Dollars

The quantity of dollars refers to the total amount of U.S. currency circulating within the economy, including physical cash and bank deposits.

Loanable Funds Demanded

The total amount of loans that borrowers are willing to take at a given interest rate, over a certain period.

Net Capital Outflow

Net capital outflow is the difference between the domestic country's purchases of foreign assets and foreign purchases of the domestic country's assets over a period of time.

Domestic Investment

The capital allocation by firms and individuals within their own country to create more goods, services, or assets.