Which of the Following Factors Can Lead to an Increase

question 56

Multiple Choice

Which of the following factors can lead to an increase in demand for coffee at Starbucks?

• A)An increase in household income
• B)An increase in the price of sugar
• C)An increase in the price of coffee beans
• D)A 10 percent decline in local population

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Definitions:

Money Supply

The overall sum of money available in an economy at a designated moment.

Government Expenditures

Spending by government agencies on goods, services, and projects to fulfill public policies, which can influence a nation's economic performance.

Multiplier

A factor that quantifies the change in economic output resulting from a change in fiscal or monetary input.

MPC

Marginal Propensity to Consume, a measure of how much consumption changes with a change in income.