A movement along a consumption function is caused by a change in

a. households' real assets
b. interest rates
c. taxation policy
d. expectations of price changes
e. households' incomes


E

Economics

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A steep LM curve implies that

A) an increase in government spending will change output by a relatively small amount. B) a decrease in taxes will change output by a relatively small amount. C) changes in government spending and taxes will have a large multiple effect on output. D) A and B.

Economics

The above figure depicts the Edgeworth box for two consumers, Al and Bruce. Explain why point "a" cannot be a competitive equilibrium

What will be an ideal response?

Economics

Which of the following central banks does not have an explicit inflation target?

a. The Bank of England b. The Federal Reserve c. Swiss National Bank d. European Central Bank e. The Reserve Bank of India

Economics

Figure 10-18


Based on , when the aggregate demand curve is in the position AD1, the economy's position of long-run equilibrium corresponds to point
a.
E1.
b.
E2.
c.
E3.
d.
E1 or E2.

Economics