The MPC and MPS measure changes in consumption expenditure and saving that result from changes in
A. expected inflation
B. disposable income
C. expected future income
D. government expenditures on goods and services.
Answer: B. disposable income
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Supply curves are formed by ______.
a. minimum prices people are willing and able to sell at b. maximum prices people are willing and able to pay c. minimum prices people are willing and able to pay d. maximum prices people are legally able to sell at
The Federal Reserve is a branch of the Treasury Department, and is therefore subject to significant government control
Indicate whether the statement is true or false
A discouraged worker ________ counted as officially unemployed and ________ counted as in the labor force
A) is; is B) is; is not C) is not; is D) is not; is not
Nondeliverable forward exchange markets in centers such as Hong Kong and Singapore help to circumvent which problem?
A) loss of goods shipped from Hong Kong and Singapore B) inconvertible currencies cannot be traded in foreign markets C) lag between the spot exchange date and the value date D) high travel costs from Asia to "traditional" foreign exchange markets E) unstable currencies that hold no purchasing power