Changes in the interest rate
a. change business spending, but not consumption spending
b. shift the consumption function
c. cause a movement along the consumption function
d. change consumption spending but not business spending
e. have no impact on autonomous consumption or business spending
B
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Each point on a supply curve represents
A) the highest price buyers will pay for the good. B) the lowest price for which a supplier can profitably sell another unit. C) the lowest price buyers will accept per unit of the good. D) the highest price sellers can get for each unit over time.
Assume a one year U.S. bond pays 4.0% interest and a similar U.K. bond pays 5.2% interest. Which of the following changes will establish interest rate parity?
a. The British pound would be expected to appreciate by 1.2% against the U.S. dollar. b. The U.S. dollar would be expected to depreciate by 1.2% against the British pound. c. The British pound would be expected to depreciate by 1.2% against the U.S. dollar. d. The British pound would be expected to appreciate by 9.2% against the U.S. dollar. e. The U.S. dollar would be expected to appreciate by 9.2% against the British pound.
Which of the following is often used by economists to assess income distribution?
a. Affordability Index b. Quintiles c. Consumer Price Index d. Quartiles
The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:
A. market economy. B. command economy C. soviet economy. D. traditional economy.