According to Keynes, the primary determinant of a person's saving is
A) the nominal interest rate.
B) the real interest rate.
C) the level of the person's consumption spending.
D) the level of the person's real current income.
Ans: D) the level of the person's real current income.
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A family on a trip budgets $800 for sit-down restaurant meals and fast food. If the price of a fast food meal for the family is $20, how many such meals can the family buy if they do not eat at restaurants?
a. 8 b. 15 c. 20 d. 40 e. 160
Refer to Figure 5.7. Which diagram best represents an income-consumption curve where bread is an inferior good?
A. A
B. B
C. C
D. D
When an economics professor quits his/her job at a university and starts looking for a better job in another university, he/she is
A. structurally unemployed. B. cyclically unemployed. C. naturally unemployed. D. frictionally unemployed.
If the net public debt expanded last year, then which of the following most likely occurred during the year?
A) The government's budget was balanced. B) The government's tax collections exceeded its spending. C) The government experienced a budget surplus. D) The government experienced a budget deficit.