As an household's wealth increases, it will experience a(n):
a. increase in its MPC.
b. decrease in autonomous consumption.
c. decrease in its MPS.
d. increase in autonomous consumption.
e. increase in autonomous saving.
d
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The Board of Governors of the Federal Reserve System is
A) elected by the public. B) elected by members of the American Banking Association. C) appointed by the Congress. D) appointed by the President with approval of the U.S. Senate.
As compared to the estimates of the natural rate of unemployment for the United States, those for Europe are
A) higher. B) the same. C) lower. D) higher and more variable.
The delay between when a problem is recognized and when policy action is taken is referred to as the
A) recognition lag. B) action lag. C) effectiveness lag. D) policy lag.
Which of the following is true for a profit-maximizing competitive firm in the long run but not a monopolist?
a. MC = MR b. MC = P c. AR = P d. Q > 0