In the aggregate expenditures model, the consumption schedule is shown to be:
A. Directly related to real interest rates
B. Inversely related to real interest rates
C. Directly related to real income GDP
D. Inversely related to real income GDP
C. Directly related to real income GDP
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A rational individual would be indifferent between ________ today and ________ four years from today if the interest is 20 percent
A) $100, $100 B) $48, $100 C) $30, $100 D) $100, $48
The authors provide an example that illustrates the calculation of the present discounted value for the lost wages from a deceased worker, and one component in this calculation is the worker's annual mortality rate (m)
Suppose we conduct this computation in two different ways --- one calculation assumes m is constant for all future periods, and the other calculation allows m to decline over time due to improvements in medical technology. Which estimated PDV will be larger? A) The PDV with constant m will be larger B) The PDV with variable m will be larger C) The two PDV's will be equal D) The answer to this question depends on the assumed interest rate
A software design company wants to pursue a platform strategy. Which of the following strategies is the firm likely to want to adopt?
a. Focus on softening rivalry b. Encourage complementary innovation c. Encourage substitute innovation d. All of the above
Bonds owned by financial institutions represent ownership of the national debt by the private sector
a. True b. False Indicate whether the statement is true or false