A decrease in stock prices alters the consumption function by:
A. decreasing disposable income.
B. increasing autonomous consumption.
C. decreasing autonomous consumption.
D. increasing disposable income.
Answer: C
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Tax reductions should also reduce the amount of consumer expenditures
a. True b. False Indicate whether the statement is true or false
A decrease in the federal funds rate leads to..
What will be an ideal response?
Recall the Application about the free-agent market for professional baseball pitchers to answer the following question(s).Recall the Application. The market for baseball pitchers suffers from an asymmetric information problem because:
A. the pitcher's current team has superior information concerning the health of the pitcher. B. the potential new teams have superior information concerning the health of the pitcher. C. baseball teams never sign injury-prone pitchers. D. a physical exam ensures that both the player's current team and potential new teams have the same information concerning the player's health.
The primary deficit is equal to
A. the deficit plus net interest payments. B. total tax revenues minus net interest minus government expenditures. C. the amount by which government purchases, transfers, and net interest exceed tax revenues. D. the amount by which government purchases and transfers exceed tax revenues.