The slope of the consumption function is
A) less than the slope of the 45-degree line but not equal to zero
B) greater than the slope of 45-degree line
C) equal to the slope of the 45-degree line
Answer: A) less than the slope of the 45-degree line but not equal to zero
You might also like to view...
The oil shock of 2007-2008 saw the price of oil rising from less than $60 a barrel in March 2007 to over $145 a barrel in July 2008, and decreasing again to just over $30 a barrel in December 2008
Assuming the economy was at potential GDP prior to the oil shock, the increase in the price of oil, such as what occurred between March 2007 and July 2008, acts as a negative supply shock, causing the inflation rate to ________ and the output gap to ________. A) increase; become negative B) increase; become positive C) decrease; become negative D) decrease; become positive
If the value of the euro falls from $1.45 to $1.42, how would this change be described?
a) The euro depreciated against the dollar. b) The euro appreciated against the dollar. c) The dollar depreciated against the euro. d) The purchasing power parity between the two currencies increased.
The definition of M2 includes
What will be an ideal response?
Financial capital is
A) the collection of stock and bond exchanges around the country. B) funds used to purchase capital goods. C) the foreign exchange market. D) assets of financial institutions.