Which of the following would be expected to shift the consumption function down?
A. increases in real disposable income
B. expectations of more business profits ahead
C. increases in wealth
D. decreases in the nation's population
Answer: D
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Russia experienced a hyperinflation of 2,500 percent per year in the early 1990s, which dipped to 10 percent per year by 2006
a. True b. False Indicate whether the statement is true or false
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in the real saving and a decline in business investment?
a. The real risk-free interest rate falls and the quantity per time period rises. b. The real risk-free interest rate falls and the quantity per time period is uncertain. c. The real risk-free interest rate does not change and the quantity per time period rises. d. The real risk-free interest rate is uncertain and the quantity per time period rises. e. The real risk-free interest rate is uncertain and the quantity per time period falls.
For a perfectly competitive firm, the profit-maximizing output level occurs where marginal cost equals price.
Answer the following statement true (T) or false (F)
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.