The part of consumption that is determined by income is referred to as autonomous consumption
a. True
b. False
B
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Which of the following is NOT an example of transactions costs?
A) high interest rates B) lawyers' fees C) brokerage commissions D) minimum investment requirements
Suppose that after disposable income increases by $500 billion, consumption expenditures increase by $450 billion. Therefore, the marginal propensity to consume would be
a. 1.11 b. 9.00 c. 0.09 d. 0.90 e. 0.82
A noncompeting labor market is best illustrated by the market for
a. fast food workers b. high school teachers c. automobile workers d. concert violinists e. insurance salespeople
The modern view of the Phillips curve suggests that
a. when inflation is less than anticipated, unemployment will fall below the natural rate. b. when inflation is steady, actual unemployment will equal the natural rate of unemployment. c. systematic demand stimulus policies will be unable to affect prices in the long run. d. there will be a trade-off between inflation and unemployment in the long run.