Lower real interest rates
A. tend to shift the consumption function upward.
B. have no significant effect on consumption.
C. tend to shift the consumption function downward.
D. tend to move the consumer upward along the consumption function.
Answer: B
You might also like to view...
Suppose wages in the market for plumbers increase. Some plumbers start taking on extra plumbing jobs while others cut back on the number of hours they work. What could explain this?
What will be an ideal response?
Economic costs of production differ from accounting costs in that
A) economic costs include expenditures for hired resources while accounting costs do not. B) accounting costs are always larger than economic cost. C) accounting costs include expenditures for hired resources while economic costs do not. D) economic costs add the opportunity costs of a firm using its own resources while accounting costs do not.
If prices rise in the United States, everything else constant, the dollar __________ against the yen and the yen __________ against the dollar
A) appreciates; appreciates B) appreciates; depreciates C) depreciates; appreciates D) depreciates; depreciates
Monetary policy has no effect on equilibrium income when the
A) LM curve is positively sloped. B) IS curve is negatively sloped. C) IS curve is vertical. D) IS curve is horizontal.