According to economists, how does an increase in the inflation rate affect the consumption function?
A. It shifts the function upward.
B. It shifts the function downward.
C. It causes movement upward along the function.
D. It causes movement downward along the function.
E. It has no predictable effect on the function.
Answer: B
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A stock index is
a. an average of a group of stock prices. b. an average of a group of stock yields. c. a measure of the risk relative to the profitability of corporations. d. a report in a newspaper or other media outlet on the price of the stock and earnings of the corporation that issued the stock.
A politician, who wants to receive the maximum number of votes, spends 9 hours a week speaking to various groups. The table below shows his estimates of how time spent with each group will affect the number of votes he receives: 
Based on the information above, how should the politician allocate his speaking time?
A. 5 hours to LPM, 2 hours to TM, 2 hours to LCL B. 4 hours to LPM, 2 hours to TM, 3 hours to LCL C. 5 hours to LPM, 1 hours to TM, 3 hours to LCL D. 3 hours to LPM, 3 hours to TM, 3 hours to LCL
When countries have different comparative advantages, the total gains from trade for all countries are larger than losses from trade.
a. true b. false
The precautionary demand for holding money arises because
A. expected transactions are completed more easily with debit cards than with credit cards. B. people want be able to make unexpected purchases or to meet emergencies. C. credit cards charge low interest rates, which makes money more attractive than credit. D. people would rather hold money in the form of time deposits than in the form of hard currency.