According to Keynes
A. both consumption and saving are positively related to real disposable income.
B. consumption is positively related to the interest rate.
C. consumption is directly related to income but saving is inversely related to income.
D. consumption is directly related to income but saving has no relationship with income.
Answer: A
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Transaction costs are likely to be ________ when property rights are ________ clearly defined
A) lower ; less B) higher; more C) lower; more D) Trick question: there is no causal relationship between transaction costs and property rights.
The two main characteristics of the production function are
A) it slopes downward from left to right, and the slope becomes flatter as the input increases. B) it slopes upward from left to right, and the slope becomes steeper as the input increases. C) it slopes upward from left to right, and the slope becomes flatter as the input increases. D) it slopes downward from left to right, and the slope becomes steeper as the input increases.
The payroll tax is the federal government’s biggest source of revenue.
Answer the following statement true (T) or false (F)
A surplus is a result of equilibrium price being below the current price.
a. true b. false