The amount of autonomous consumption in an economy is measured by the:
a. the intercept of the consumption function when disposable income is positive.
b. the intercept of the consumption function where actual consumption is above the 45-degree line.
c. the intercept of the consumption function when disposable income is zero.
d. the intercept of the consumption function where actual consumption is below the 45-degree line.
e. the intercept of the consumption function when disposable income is negative.
c
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On the books of the Fed the difference between borrowed reserves and discount loans is equal to
A) excess reserves. B) required reserves. C) currency in circulation. D) zero; they are the same thing.
If long-run costs are plotted on the vertical axis and quantity of output plotted on the horizontal axis, a positively sloped line implies _____
a. constant returns to scale b. economies of scale c. diseconomies of scale d. an increase in capital-labor ratio e. a decrease in cost-output ratio
What was one reason the U.S government started a Federal Reserve system?
(A) To keep the banking power of the United States spread out among various districts. (B) To have a place for banks to deposit their excess deposits. (C) To provide consumers with access to funds for business expansion. (D) To make sure that the U.S. banks were obeying laws regarding banking.
The law of increasing opportunity costs is a result of the fact that:
A) the value of the dollar has declined over time. B) wage rates rise as the economy reaches full employment. C) consumers tend to value a good more when they don't have much of it. D) resources are not equally productive in all output categories.