Social insurance programs do not provide
a. disability payments
b. Medicare payments
c. international aid
d. unemployment income
e. retirement income
C
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Why does an increase in the price level tend to cause the consumption function to shift downward?
a. An increase in the price level decreases disposable income. b. An increase in the price level increases the demand for fixed money assets. c. An increase in the price level decreases the value of fixed money assets. d. An increase in the price level decreases saving and increases debt.
A nation can determine how close it is to the classical range by considering its:
a. Export position. b. Net export position. c. Capacity utilization index. d. Exchange rate. e. All of the above.
If price rises, what happens to the quantity demanded for product?
What will be an ideal response?
Which of the following is NOT one of the concerns that economists have about the Fed's use of quantitative easing (QE)?
A. That long-term interest rates may become negative B. That interest rates will rise sharply when QE is reversed C. That too much money is being added to the economy D. That it will eventually lead to inflation