Which one of the following will shift the consumption function upward?
A. higher interest rates
B. an increase in real assets
C. expectations of future economic growth
D. lower capacity utilization rates
Answer: B
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Necessities tend to have more inelastic demands than luxuries
Indicate whether the statement is true or false
Which of the following is not a permanent member of the FOMC?
A) The president of the New York Fed B) The president of the Philadelphia Fed C) The chairman of the board of governors D) All of the above are permanent members of the FOMC.
Which of the following best describes the impact of technological change on labor? a. Technology causes unemployment in the short run and lower incomes in the long run
b. Technology causes unemployment in the short run and higher incomes in the long run. c. Technology causes unemployment in the long run and higher incomes in the short run. d. Technology causes unemployment in the long run and lower incomes in the short run. e. Technology causes unemployment and lower incomes in both the long run and the short run.
From 2007 to 2008, the Federal Reserve System reduced interest rates, the price that borrowers pay. As a result, economists expected demand for money to
a. increase. b. decrease. c. not change. d. be influenced by the interest rate, but with an uncertain effect.