In __________ Economy, If Prices Rise Faster Than Consumer Incomes

question 97

Multiple Choice

In __________ economy, if prices rise faster than consumer incomes, the number of items consumers can buy decreases.

• A)a deflationary
• B)an expansionary
• C)a recessionary
• D)an inflationary
• E)a depressive

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Definitions:

CDs

Certificates of Deposit, savings certificates with a fixed maturity date and specified fixed interest rate, offering a low-risk investment option.

Quantity Demanded

Refers to the total amount of a good or service that consumers are willing and able to purchase at a given price in a specified time period.

Demand

Demand in economics is defined as consumers' willingness and ability to purchase goods or services at a given price over a specific period of time.

Normal Goods

Goods for which demand increases as consumer income rises, and decreases when consumer income falls.