The consumption function shifts upward when
A) real income increases.
B) saving increases.
C) the real wealth of the average household increases.
D) population decreases.
C
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Interest rates are determined by the
A. market supply and demand for loanable funds. B. rental rate of capital. C. marginal revenue product of physical capital. D. physical depreciation of capital.
Keynesians tend to believe that
A. laissez-faire policies stabilize market economies. B. recessions are temporary. C. expansionary government spending and tax cuts are cures for recessions and depressions. D. in the short run, aggregate supply should be manipulated to stabilize the economy.
Min is not an art lover. But, she just purchased a painting because she thinks it will be a good way to hold her wealth over time. Which function of money is the painting fulfilling?
A. medium of exchange B. store of value C. medium of deferred payment D. unit of account
Which of the following will cause a movement along the demand curve for shoes?
A. an increase in the price of socks B. an increase in the price of shoes C. an increase in income D. all of these