Total consumption consists entirely of two components: autonomous consumption and income-dependent consumption.

Answer the following statement true (T) or false (F)


True

Autonomous consumption is independent of income, while the rest of consumption is strongly correlated to the level of income.

Economics

You might also like to view...

The equilibrium level of regulation is where the marginal political benefits to the special interests are equal to the marginal political costs of the foregone regulation

a. True b. False

Economics

The slope of the utility possibilities frontier is

A) positive. B) negative. C) zero. D) undefined.

Economics

If the demand for a product falls and the supply stays the same

A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.

Economics

If at some interest rate desired investment is $400 billion, desired private saving is $600 billion, and the budget deficit is $300 billion, is there a surplus or a shortage in the market for loanable funds? What does this imply would happen to interest rates?

Economics