The consumption function is drawn on a graph with disposable income on the horizontal axis without including investment. Assume investment is autonomous and is added to the consumption function. The effect is:
a. an upward adjustment in the vertical intercept
b. no change in the adjustment in the vertical intercept.
c. an increase in the slope of the consumption schedule.
d. a decrease in the slope of the planned expenditure schedule.
a
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U.S. Treasury deposits at the Fed are
A) part of M1, M2, and M3. B) part of M1 and M2. C) part of M1. D) not part of the money supply.
Monetarists argue that aggregate demand is
A) vertical. B) horizontal. C) relatively unaffected by autonomous spending shifts. D) relatively unaffected by changes in the money supply.
Which of the following is not considered part of M2?
a. Small time deposits of less than $100,000. b. Money market mutual fund shares. c. Savings deposits. d. Large time deposits of more than $100,000.
The personality of the business leader is necessary for a firm's success
Indicate whether the statement is true or false