The spending multiplier is defined as:
a. the ratio of the change in equilibrium real GDP to the initial change in spending.
b. the change in initial spending divided by the change in personal income.
c. 1 / (marginal propensity to consume).
d. 1 / (1 ? marginal propensity to save).
a
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An index, based on a telephone survey of 500 households conducted by the University of Michigan, that measures households' attitudes regarding expected business conditions, personal financial conditions, an consumer confidence about purchasing
furniture and major household appliances is called the: A) Consumer Sentiment Index. B) Consumer Confidence Index. C) Consumer Satisfaction Index. D) Consumer Consumption Index.
The $1.90 (PPP) per day line was chosen by averaging the national poverty lines of 15 poor countries to represent:
A. chronic poverty by some globally comparable standard. B. absolute poverty by some globally comparable standard. C. transient poverty by some globally comparable standard. D. relative poverty by some globally comparable standard.
Which one of the following is not a component of GDP, as measured using the expenditure approach?
a. Personal consumption. b. Exports. c. Durable goods. d. Government spending. e. Interest.
The direct trade of goods and services for other goods and services is called:
A. using a medium of exchange. B. barter. C. financial intermediation. D. diversification.