When the real interest rate falls, there is
A) an upward shift of the consumption function.
B) an increase in the slope of the consumption function.
C) a movement upward along the consumption function.
D) a decrease in the slope of the consumption function.
E) a downward shift of the consumption function.
A
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An earthquake destroys a good portion of the capital stock. How would you expect this to affect the capital—labor ratio in the long run? There would be
A) a rightward movement along the saving-per-worker curve and an increase in the capital—labor ratio. B) no change in the long-run capital—labor ratio. C) a downward shift in the saving-per-worker curve and a decrease in the capital—labor ratio. D) a leftward movement along the saving-per-worker curve and a decrease in the capital—labor ratio.
An effective Federal Reserve operating target is a target that is reliably linked to
A) inflation and unemployment rates. B) other operating targets. C) fiscal policy. D) open market operations.
Backorders occur when you do not have inventory in stock and your customer . . . ?
a. Switches to a different brand. b. Decides to keep their business with your organization and wait for the desired product. c. Cancels the order because she decides she has enough inventory all ready. d. Decides to take her future business elsewhere. e. Either A or D
Credit Unions are regulated by a combination of agencies which includes:
A. The Federal Deposit Insurance Corporation. B. The Office of the Comptroller of the Currency. C. state authorities. D. The Federal Reserve.