-The Graph Illustrates the Demand for Peanuts

question 115

Multiple Choice

-The graph illustrates the demand for peanuts.Peanuts are a normal good because the

• A) demand curve for peanuts slopes downward.
• B) demand for peanuts increases when income increases.
• C) demand for peanuts increases when the price of one of its substitutes rises.
• D) peanuts have both substitutes and complements.
• E) demand curve shows that if the price of peanuts rises, there is a movement along the demand curve to a lower quantity demanded.

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Definitions:

National Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments and domestic institutions.

Trillion Mark

A reference to a period of hyperinflation in Weimar Germany where the mark, the currency at the time, devalued to the point where trillions were needed for basic transactions.

Budget Deficit

The situation where a government's expenditures exceed its revenues over a specified period, leading to borrowing or money printing.

Tax Receipts

The total amount of tax revenue collected by a government from individuals and businesses.