Households can finance their consumer spending from current
A. income.
B. wealth.
C. debt.
D. income and current wealth.
Answer: D
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Explain whether the statement "The government should increase tariffs on Japanese cars to protect the American car industry from competition," is a normative or positive statement
What will be an ideal response?
An increase in the price level ________ real wealth, which causes consumption to ________
A) lowers; decrease B) raises; decrease C) lowers; increase D) raises; increase
Which of the following statements is false?
a. A decrease in the reserve ratio does not change the monetary base. b. Purchases of foreign currency by the central bank increase the monetary base. c. Discount loans to banks decrease a nation's monetary base. d. All are false. e. All are true.
When the government places a tax on a product, the cost of the tax to buyers and sellers
a. is less than the revenue raised from the tax by the government. b. is equal to the revenue raised from the tax by the government. c. exceeds the revenue raised from the tax by the government. d. Without additional information, such as the elasticity of demand for this product, it is impossible to compare the cost of a tax to buyers and sellers with tax revenue.