In the consumption function, the real interest rate, consumer confidence, wealth, available consumer credit, and consumer debt are captured in the autonomous consumption term of the consumption function
Indicate whether the statement is true or false
TRUE
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The opportunity cost of 1 wristwatch is 4 wall clocks in Japan and 2 wall clocks in Germany. If the nations split the difference between the willingness to pay and the willingness to accept, the terms of trade are 3 wristwatches per wall clock
Indicate whether the statement is true or false
Imports into the U.S. increased when
(a) deflation in the U.S. occurred. (b) real wages and incomes rose in the U.S. (c) the International Trade Commission was established. (d) all of the above occurred.
When the price of gasoline rises, some consumers begin riding their bikes more frequently or riding the bus instead of driving their cars. The fact that the CPI does not fully account for such changes in consumer behavior is called
A) outlet bias. B) increase in quality bias. C) substitution bias. D) discrimination bias.
Evidence generally suggests that oligopolies inhibit technological advances.
Answer the following statement true (T) or false (F)