The consumption theories proposed by Modigliani and Friedman suggest that during recessions consumers reduce
A) consumption and maintain saving.
B) saving and maintain consumption.
C) consumption and saving.
D) consumption and investment.
B
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Which markets are depicted in the basic circular flow model?
A) the factor market and the bond market B) the stock market and the bond market C) the money market and the foreign exchange market D) the goods market and the stock market E) the goods market and the factor market
Keynesian economists believe that the government should do what during a downturn in the economy?
a. Increase government spending and decrease taxes b. Increase government spending and increase taxes c. Decrease government spending and decrease taxes d. Decrease government spending and increase taxes
The commercial air travel industry and the wireless service industry illustrate which type of market structure?
a. Oligopoly b. Natural monopoly c. Duopoly d. Perfect competition
The purpose of the statistical discrepancy line item is to ______.
a. obtain a net balance of zero dollars for the unilateral transfers b. sum the difference between service exports and service imports c. obtain a net balance of zero dollars for the balance of payments d. ensure that the financial account balance is zero dollars