Which one of the following statements is MOST accurate?
A) In general, consumption demand rises by less than disposable income.
B) In general, consumption demand rises by more than disposable income.
C) In general, consumption demand rises by more than income.
D) In general, consumption demand rises by the same amount as disposable income rises.
E) In general, consumption demand rises are unrelated to disposable income rises.
A
You might also like to view...
For the past several decades, the percentage of national income in the United States allocated to physical capital (rents, interest, profit) has been approximately
a. 20 percent. b. 40 percent. c. 60 percent. d. 80 percent.
Economic models are used by economists to
A. Develop economic policies. B. Explain economic behavior. C. Predict economic behavior. D. All of the choices are correct.
Refer to the diagram. Assume that G and T 1 are the relevant curves, the economy is currently at A, and the full-employment GDP is B. This economy has a(n):
A. cyclically adjusted budget surplus.
B. cyclically adjusted budget deficit.
C. actual budget deficit.
D. actual budget surplus.
In the short run, a firm cannot change the amount of capital it uses. Therefore the cost of capital is a
A) short-run cost. B) variable cost. C) productivity cost. D) fixed cost. E) marginal cost.