According to James Duesenberry
a. relative income is unimportant
b. the MPC decreases as national income increases
c. Keynes's absolute income hypothesis is correct but his investment hypothesis is not confirmed by the data
d. the consumption function slopes downward
e. consumption spending is rooted in status
E
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One option the government has to restore funding to transfer programs such as Social Security is to raise or eliminate the income cap on Social Security payments
Other things equal, this would result in ________ in the after-tax return to capital goods and cause firms and households to accumulate ________ capital. A) an increase; more B) an increase; less C) a decrease; more D) a decrease; less
People continue to value money because they have confidence in its convertibility into goods and services
a. True b. False Indicate whether the statement is true or false
In an environment of tournament pay, it is quite likely that marginally more productive employees will receive
a. less than their marginal revenue product, while less productive employees receive more than theirs. b. more than their marginal revenue product, while less productive employees receive less than theirs. c. more than their marginal revenue product, as do less productive employees. d. less than their marginal revenue product, as do less productive employees.
Which of the following events can not cause the labor-supply curve to shift?
a. a change in people's attitudes toward work b. an increase in the price of output c. a change in workers' alternative opportunities d. an increase in the rate of immigration