In contrast to the functional finance view, Classical sound finance macroeconomics assumes that individuals:
A. do not adjust their spending to account for future tax payments.
B. adjust their spending to account for future incomes.
C. do not adjust their spending to account for future incomes.
D. adjust their spending to account for future tax payments.
Answer: D
You might also like to view...
The absence of barriers to entry in monopolistic competition means that in the long run, firms
A) earn an economic profit. B) earn zero economic profit. C) incur an economic loss. D) earn either an economic profit or zero economic profit. E) earn either zero economic profit or suffer an economic profit.
Which of the following countries has historically been more willing to sacrifice environmental quality for additional economic output?
a. United States b. China C. Canada D. France
Which of the following is most consistent with economizing behavior?
a. If you get the same satisfaction from a hamburger and a fish sandwich, you should purchase the one that costs the most. b. Even if you know how to paint, hiring someone to do the job is consistent with economizing behavior, if your opportunity cost is high enough. c. If the government provides a good free to citizens, the opportunity cost of the good is zero. d. If you get the same satisfaction from going to the opera and going to an art museum, it makes no difference which you choose.
Price equals the minimum of long-run average cost
A) in a long-run equilibrium. B) in a short-run equilibrium as well as in a long-run equilibrium. C) whenever average revenue equals marginal cost. D) along a horizontal long-run supply curve, but not along an upward sloping long-run supply curve.