Average propensity to consume
A) is the same as the break-even point.
B) gives the amount a person changes planned consumption for a change in real disposable income.
C) is the amount of consumption that is independent of the level of disposable income.
D) is the proportion of total disposable income that is consumed.
D
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Aggregate expenditure in the U.S. economy includes spending for U.S. output by
a. households and businesses, but not governments. b. households, businesses, and the federal government, but not state and local governments. c. households, businesses, and all governments except foreign ones. d. households, businesses, and governments, both domestic and foreign.
In late 2007, the Fed began a series of cuts in the federal funds rate. Because the core inflation rate was about two percent, the most likely reason for these interest rate cuts was
A) to increase the real interest rate. B) to avoid a recession. C) to encourage households to save more money. D) to reduce the natural unemployment rate. E) to raise the price of the dollar in the foreign exchange market.
The opportunity cost of holding money is measured by:
A) short-term nominal interest rate B) short-term real interest rate C) long-term nominal interest rate D) long-term real interest rate
From 1995 to 2013, total revenues in public institutions
A. increased $230 billion. B. increased $47 billion. C. decreased. D. remained constant.