The consumption function shows the relationship between
a. planned consumption expenditures and disposable income.
b. permanent income and savings.
c. business inventory and real GDP.
d. aggregate demand and aggregate consumption.
A
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When prices do not change very much, the income-expenditure model can be used to understand economic fluctuation in the
A) long run. B) fiscal year. C) short run. D) federal budget allocation.
You are the manager of a nail salon you believe one of your suppliers is engaged in cartel activity. As the manager, you ________ an incentive to report the behavior because your nail salon can ________.
A) do not have; receive treble damages B) do not have; have to pay whistle-blower fees C) have; receive treble damages D) have; have to pay whistle -blower fees
A reduction in business expectations, combined with the imposition of new tariffs by major trading partners, would have what effect on aggregate demand? a. AD would increase
b. AD would decrease. c. AD would stay the same. d. AD could either increase or decrease, depending on which change was of a greater magnitude.
Capital investment becomes more profitable for a business firm as the real interest rate decreases
a. True b. False Indicate whether the statement is true or false