What are the two types of consumer spending as identified by Keynes, and what are the determinants of each?
What will be an ideal response?
Consumer spending can be classified as autonomous consumption and income-dependent consumption. Autonomous consumption is consumption that occurs independent of income. It is determined by factors such as expectations, wealth, credit, taxes, and price level. Income-dependent consumption is determined by current income only.
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Which of the following sources of revenue is used to fund government spending?
A) political party contributions B) interest C) taxation D) corporate contributions
If the price of a hot dog is $2 and the price of a hamburger is $4, then the
A) relative price of a hot dog is 1/2 of a hamburger per hot dog. B) money price of a hot dog is 2 hamburgers per hot dog. C) relative price of a hamburger is 1/2 of a hot dog per hamburger. D) money price of a hamburger is 2 hot dogs per hamburger.
Refer to the following graph. An increase in supply is reflected as
a. a shift of the supply curve from S to S2.
b. a shift of the supply curve from S to S1.
c. a shift of the supply curve from S1 to S2.
b. a change in the quantity supplied from 6.8 to 5.2 million minutes when price is $12.50.
Suppose that you desperately need a grade of "A" from your International Finance course and further suppose that it depends upon the grade that you will get from the term paper that you write on PPP
Let's assume that you know that your teacher believes that PPP holds anytime anywhere. What kind of evidence would you submit that would indicate that PPP holds? In other words, what kind of countries and data would you choose for your analysis to bias the empirical results regarding PPP?