Which of the following is a definition of the consumption function?
a. A functional relationship between real consumption spending and real disposable income
b. A functional relationship between real consumption spending and the interest rate
c. A functional relationship between real consumption spending and wealth
d. A functional relationship between real consumption spending and total spending
e. A functional relationship between real consumption spending and net taxes
A
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Refer to Figure 6.1. Suppose the economy is originally in steady state at k*1. If the saving rate increases from s1 to s2,
A) depreciation becomes greater than investment. B) investment becomes greater than depreciation. C) investment becomes greater than saving. D) saving becomes greater than investment.
The decline in net worth that can result from an unanticipated decline in the price level is known as ________
A) a credit boom B) deleveraging C) a debt deflation D) federal funds rationing
Which of the following distinctions does not help to explain the difference between relevant and irrelevant cost?
A) historical vs. replacement cost B) sunk vs. incremental cost C) variable vs. fixed cost D) out-of-pocket vs. opportunity cost E) All help to explain the difference.
To answer the question, refer to the following table showing a demand schedule: 
As output increases from 1,000 to 1,400 what is marginal revenue?
A. -$75 B. $50 C. -$400 D. -$25 E. $25