An increase in expected future income increases ________
A. consumption expenditure, which increases current aggregate demand
B. investment, which increases current aggregate supply
C. the demand for money, which decreases current aggregate demand
D. future consumption expenditure and has no effect on current aggre-gate demand
A Consumption expenditure increases as consumers buy big-ticket items now with the idea of paying for them in the future.
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Refer to the Article Summary. The increase in consumer spending discussed in the article summary was due in part to increases in employment and lower energy prices, which lead to an increase in disposable income
The increase in consumption resulting from the increase in disposable income will cause a(n) ________ the aggregate expenditure curve. A) movement down along B) upward shift of C) movement up along D) downward shift of
The bulk of Eurocurrency Market transactions are denominated in
A) Eurodollars. B) Eurosterling. C) Euroeuros. D) Euroyen.
One problem with a cost plus incentive fee procurement contract is _____
a. it requires clearly defined output that is not really malleable b. it almost always leads to higher costs c. firms have a strong incentive to invest in the most expensive technology to complete the project d. firms have an incentive to misrepresent final costs
A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because
a. crop supply changes very little despite the weather b. crop supply fluctuates with the weather c. weather never varies d. crops go in and out of fashion as new diets are developed e. crop demand fluctuates with the weather