The amount by which consumption increases when disposable income increases by $1 is called:
A. the consumption function.
B. autonomous expenditure.
C. an automatic stabilizer.
D. the marginal propensity to consume.
Answer: D
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The Board of Governors of the Federal Reserve System does NOT
A) consist of seven members with fourteen-year terms. B) include the presidents of the twelve Federal Reserve Banks. C) utilize a system of rotations so that a position comes open every two years. D) consist of members whose appointments have been approved by the Senate.
General grants come with strings attached
a. True b. False
The real rate of interest is the
a. money rate of interest plus the inflationary premium. b. money rate of interest minus the inflationary premium. c. yield one can expect to receive on loanable funds without taking significant risk. d. risk component associated with the ownership of real assets.
By convention, there are two major divisions of economics, called:
A. rational economics and irrational economics. B. marginal benefit and marginal cost. C. microeconomics and macroeconomics. D. reservation price and opportunity cost.