The difference between consumption spending and disposable income _____
a. decreases as income increases
b. stays proportionally the same as income increases
c. decreases if the interest rate increases
d. equals the amount of taxes paid
e. equals saving
e
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Refer to the table above. What happened to the real value of the minimum wage between 1974 and 2011?
A) It decreased. B) It remained the same. C) It increased. D) It could not be determined from the given information.
The usual response of the banking system to new government regulations is
A) evasion through whatever means are necessary. B) strict compliance. C) an attempt to circumvent the regulations through financial innovation. D) bankruptcy.
Which theory asserts that when the costs of becoming informed and voting are too high, people will not vote in an election?
a. Theory of rational ignorance b. Median voter theory c. Normative political theory d. Theory of majority rule
What was the original stated purpose of Fannie Mae and Freddie Mac?
a. to allow the government to extend loans directly to low-income and minority households b. to help provide liquidity in the secondary mortgage markets c. to operate as non-profit entities that would provide competition for for-profit mortgage companies d. to take on mortgages going into default in order to prevent them from going into foreclosure