If consumers experience an decrease in lifetime income, current spending will ________, current saving will ________, and future spending will ________
A) decrease; decrease; decrease
B) increase; decrease; decrease
C) increase; decrease; increase
D) increase; increase; decrease
E) decrease; increase; increase
A
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Are living standards in developed and developing countries converging? Give evidence to support your answer
What will be an ideal response?
The Goldin and Lewis (1975) study of the costs of the Civil War:
a. finds peaceful abolition of slavery would have been more costly than the War. b. fails to include an estimate for the loss of human capital due to the War. c. estimates the total cost of the War at more than double national income in 1860. d. finds Northern property damage to be a major factor in the War's cost.
Which of the following is a belief of the monetarists?
a. They think the Great Depression was made worse by poor conduct of monetary policy. b. They do not believe monetary policy is transmitted to the economy only through its effect on interest rates and planned investment. c. They believe that the interest-investment curve is vertical. d. All of these.
Which statement is false?
A. The spreading use of electricity during the 1920s helped create rapid economic expansion in that decade. B. The stock market rose very rapidly in the late 1920s. C. Between 1921 and 1929 national output rose by 50 percent. D. None of the statements are false.