If Z Is an Inferior Good, an Increase in Money

question 284

Multiple Choice

If Z is an inferior good, an increase in money income will shift the

• A) supply curve for Z to the left.
• B) supply curve for Z to the right.
• C) demand curve for Z to the left.
• D) demand curve for Z to the right.

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Definitions:

Budget Deficit

A budget deficit happens when a government's expenditures surpass its revenues within a given fiscal period.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers at those prices.

Net Capital Outflow

Refers to the difference between the purchase of foreign assets by domestic residents and the purchase of domestic assets by foreigners. A positive net capital outflow means a country is investing more abroad than others are investing in it.

Open-Economy Macroeconomic Model

A framework for analyzing economies that engage in international trade, highlighting how these economies interact with the rest of the world economically.