If People's Expectations About Future Income Improve So They Think

question 120

Multiple Choice

If people's expectations about future income improve so they think their future income will be higher than previously believed,then the AD curve

• A)will not change until income actually rises.
• B)will shift leftward because people will spend less now.
• C)will shift rightward because people will increase spending now.
• D)and the AS curve will both shift leftward because people will increase their saving.
• E)will not shift,but potential GDP will increase.

Appreciate the diversity of philosophical perspectives on the nature of a good society and the good life.

Understand the philosophical discussions around human nature, cooperation, and the role of society.

Evaluate the philosophical arguments regarding distributive justice and its practice in societies.

Understand the foundational theories and concepts of social contract and the formation of societies.

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Definitions:

Cash Discount Period

The time frame within which a purchaser can pay less than the full invoice amount due to taking advantage of a cash discount offered by the seller.

Credit Period

The duration of time a buyer is allowed to pay for goods or services after the delivery date.

Type of Credit Instrument

A financial tool or document, such as a loan or bond, that provides evidence of debt or an extension of credit from one party to another.