The five most important variables that determine the level of consumption are
A) disposable income, wealth, expected future income, price level, and interest rate.
B) wealth, savings account balances, checking account balances, stock portfolio balances, and bond portfolio balances.
C) government purchases, saving account balances, wealth, interest rates, portfolio balances.
D) government purchases, interest rates, income, taxes, and transfers.
A
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A decrease in the price level in the economy leads to
A) a leftward shift in the demand for money curve. B) a rightward shift in the demand for money curve. C) a leftward movement along the demand for money curve. D) a rightward movement along the demand for money curve.
Classical economists believe that in the short run
A) money neutrality exists and prices adjust rapidly. B) money neutrality does not exist and prices adjust rapidly. C) money neutrality exists and prices do not adjust rapidly. D) money neutrality does not exist and prices do not adjust rapidly.
A cash-payment welfare program, where eligibility is no longer an entitlement but emphasizes welfare-to-work is
a. food stamps b. Medicare c. Social Security d. TANF e. SSI
Since the 1970s, the velocity of money has
a. behaved in a predictable fashion. b. behaved in an erratic fashion. c. decreased in value. d. increased in a stable and predictable fashion.