Which of the following would lead to an upward shift of the consumption-income line?
a. A decrease in income
b. A decrease in population
c. An increase in income
d. An increase in wealth
e. An increase in the interest rate
D
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Refer to Scenario 12.1 At the assumed annual inflation rate of 5 percent, approximately how much will the $6.00 pack of cigarettes cost in 10 years, when Jennifer reaches the age of 35?
A) $8 B) $10 C) $16 D) $23
A decrease in the discount rate
A) reduces the cost of borrowing from the Fed. B) increases the cost of reserves borrowed from the Fed. C) signals the Fed's desire to decrease the money supply. D) signals the Fed's desire to reduce lending to commercial banks.
Stagflation can be explained by
a. the IS curve shifting up. b. the IS curve shifting down. c. the LM curve shifting to the right. d. the LM curve shifting to the left. e. none of the above.
The Food, Conservation, and Energy Act of 2008 does not address the fundamental problem of agricultural subsidies, which is that those subsidies:
A. reduce work incentive for farmers, thus reducing agricultural production. B. slow the exodus of resources from agriculture, increase production of agricultural products, and reduce crop prices and market incomes. C. increase the exodus of resources from agriculture and reduce investments by farmers in land and equipment. D. are based on past agricultural production and not on current agricultural production.