The Income Effect for an Inferior Good

question 127

Multiple Choice

The income effect for an inferior good

• A) is negative.
• B) is positive.
• C) is zero.
• D) could be negative, zero or positive.

---

Definitions:

Deferral Method

An accounting principle where income or expenses are postponed to future reporting periods.

Programmatic Reporting

The process of generating reports and documents that are automatically created and distributed by software systems, often used in digital advertising and marketing.

Donations

Gifts of money or goods to charitable organizations or institutions, often tax-deductible for the donor.

Endowment Contribution

Funds given to an institution, often a nonprofit or educational entity, with stipulations that the principal be maintained permanently and only the investment income be used.