If the Fed lowers the interest rate, then
A) only consumption expenditure decreases.
B) only investment decreases.
C) both consumption expenditure and investment decrease.
D) net exports will increase.
E) consumption expenditure decreases and investment increases.
D
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If you feel you are better off because you receive a 10 percent raise even when the price level also increases by 10 percent, then you are a victim of the
A) real purchasing power effect. B) money income effect. C) real income effect. D) money illusion.
Which of the following statements are correct about the age-earnings cycle?
A) Earnings generally increase up till age 30 and then steadily decrease. B) Earnings increase throughout a prison's lifetime until they reach retirement. C) Earnings increase with age because workers become more productive as they age until around 50 years. Around 50 the effects of aging outweighs the further increases in productivity. D) Since every person is different we can reach no general conclusions about the age-earnings cycle.
Which of the following is associated with inelastic demand?
a. a limited amount of time for consumers to respond to a price change b. availability of many close substitutes c. large percentage of income spent on the good in question d. all of the above
The sum of the value added at all stages of production for a product is
A. the product's final price. B. the sum of all the transactions in the production of the product. C. the product's price minus the value of intermediate goods. D. the product's price plus the value of intermediate goods.