Which of the following is NOT usually assumed about the effect of disposable income on aggregate consumer spending?
A) Consumer spending is at a higher level of disposable income.
B) At low levels of disposable income, saving may be negative.
C) Consumption is always less than disposable income.
D) A rise in income leads to a less than proportionate rise in consumption.
C
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In the table above, country B is producing 4 units of X and 6 units of Y. For country B, the opportunity cost of producing an additional unit of Y is
A) 1/2 unit of X per unit of Y. B) 2/3 unit of X per unit of Y. C) 2 units of X per unit of Y. D) 3 units of X per unit of Y.
When spending and incomes in an economy increase,
A) imports are likely to increase. B) imports are likely to be unchanged. C) imports are likely to decrease. D) exports are likely to decrease.
A Dutch auction is a(n) ________-bid auction in which participants ________ observe each participant's bids.
A) descending; do not B) ascending; do not C) descending; do D) ascending; do
The Fed can drive up interest rates by selling government securities and decreasing the money supply
a. True b. False Indicate whether the statement is true or false