When graphing the consumption function, we include a 45-degree reference line. What is TRUE at the points at which the consumption function crosses this line?

A. Planned real consumption spending is zero.
B. Planned real saving is zero.
C. Real disposable income is zero.
D. Real GDP is zero.


Answer: B

Economics

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A) A lottery B) Equal shares for all C) First come, first served D) Highest money bid E) Might makes right

Economics

The Federal Reserve System was founded in:

a. 1935. b. 1929. c. 1933. d. 1913.

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Find the annual interest rate that would create a perpetual cash flow stream of $15,000 when the present value of the asset is $100,000.

A. 0.15 percent B. 0.1765 percent C. 15 percent D. 17.65 percent

Economics

Which statement is false?

A. The main liberal theories of poverty are employment discrimination, black male joblessness, and the inadequacy of human capital. B. William Julius Wilson sees racism and technological change as leading causes of black poverty. C. Barbara Ehrenreich and Frances Fox Piven call for a large government jobs program to wipe out poverty. D. None of these statements are false.

Economics