The largest component of current consumption expenditure is ________, while the most volatile component is ________
A) durable goods, nondurable goods
B) durable goods, services
C) services, durable goods
D) services, nondurable goods
E) nondurable goods, services
C
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The Car Allowance Rebate System (CARS)
a. was launched as a stimulus program by the Reagan administration b. was introduced under the Consumer Assistance to Recycle and Save Act of 2009 c. is currently available to purchasers of plug-in hybrids d. was the first-ever Vehicle Accelerated Vehicles Retirement (VAVR) program
Use the following table with data for a private open economy (no government) to answer the next question.All figures are in billions of dollars. Real GDPC + INet Exports$400$420$20450460205005002055054020600580206506202070066020If net exports increased by $10 billion at each level of GDP, the equilibrium real GDP would be
A. not determinable using this table. B. $610. C. $700. D. $650.
According to the real-balance effect, an increase in the price level will
A) leave total planned real expenditures unchanged since the price level of all goods has increased. B) decrease total planned real expenditures because of an increase in interest rates. C) lead to a corresponding increase in total planned real expenditures since businesses are now earning higher profits. D) decrease total planned real expenditures as a result of a decrease in the real value of money balances.
Which of the following will cause an increase in the quantity demanded of ice cream at an ice cream store?
a. The onset of summer brings about an increase in the temperature. b. The price of frozen yogurt that is sold at the store is reduced by 5 percent. c. A new ice cream flavor is introduced at the store. d. The store introduces a limited period offer of 20 percent off on the price of ice cream. e. The income of the store's consumers increases.