Induced expenditure is any expenditure that
A) is fixed for all price levels.
B) is fixed for all levels of real GDP.
C) changes when real GDP changes.
D) changes when the interest rate changes.
E) is fixed for all levels of the interest rate.
C
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Consider two individuals, Ozzy and Sharon, who produce toy boats and yoyos. Ozzy's and Sharon's hourly productivity are as follows:
Yoyos /hour Toy boats /hour Ozzy 12 4 Sharon 10 5 Who has the absolute advantage or comparative advantage in the production of yoyos or boats?
Why do some firms in an oligopoly refrain from colluding?
What will be an ideal response?
Rent-control laws dictate
a. the exact rent that landlords must charge tenants. b. a maximum rent that landlords may charge tenants. c. a minimum rent that landlords may charge tenants. d. both a minimum rent and a maximum rent that landlords may charge tenants.
The marginal productivity theory of income distribution holds that ______.
a. the most productive employees increase income by maximizing the substitution effect b. owners of the means of production receive higher payments than workers or land owners c. labor, land, and capital owners are all paid for the value of their contribution to output d. union workers will receive higher wages than nonunion workers for comparable labor