Changes in autonomous consumption could be the result of:
A. changes in inflation.
B. changes in disposable income.
C. changes in housing prices.
D. changes in the mpc.
Answer: C
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
The demand for organically grown food is
A) increasing. B) decreasing. C) stagnant. D) unpredictable.
Does economic growth have any negative side effects?
A) No. Every person in a nation experiencing economic growth will benefit. B) No, because where negative side effects do occur, a nation's government is required to neutralize them. C) Quite possibly. Some say economic growth puts people on a never-ending quest to satisfy newly created wants, so we always feel disappointed with our lives. D) yes, but only for the poorest segment of a nation's population
A valid argument against redistributing income to achieve complete equality is that: a. income equality would destroy the social cohesiveness that exists among different income groupings
b. this would eliminate the monetary incentives to work and produce. c. the cost of obtaining the equality would be so deflationary as to promote economic instability. d. income equality would imply class segregation based on factors such as sex or race, since income would be constant.