Holding everything else constant, the less wealth a household has
A. the less it will consume now, but the more it will consume in the future.
B. the more it will consume now, but the less it will consume in the future.
C. the less it will consume, both now and in the future.
D. the more it will consume, both now and in the future.
Answer: C
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Holding other things constant, if the Japanese Yen, appreciates, it makes the Japanese products
a. Less attractive to US customers b. More attractive to US customers c. Neither more nor less attractive to US customers d. None of the above
Assume an economy with an upward-sloping aggregate supply curve and an MPC of .80 . An increase in investment spending of $50 billion will most likely increase total income by
a. $200 billion. b. $40 billion. c. more than $200 billion. d. more than $50 billion but less than $250 billion.
Explain the concept of diminishing marginal utility, and describe the role that it plays in the utilitarian argument for the redistribution of income
The first bankers were
A) sheriffs. B) goldsmiths. C) clergy. D) innkeepers. E) economists.