The function that shows the inverse relationship between planned consumption and investment spending and the real interest rate, all else constant, is called the:
A) interest-related expenditure function.
B) aggregate expenditure function.
C) consumption function.
D) investment function.
A
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If all income is consumed in a year, then
A) income next year will increase. B) investment spending will be zero. C) any investment spending will be done by the government. D) investment spending will increase.
Food stamps provided by the U.S. Department of Agriculture are an example of
A) a positive externality. B) a private subsidy. C) vouchers. D) an external benefit.
How are interest payments on mortgages distributed to investors who own mortgage-backed securities?
What will be an ideal response?
Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed is ________ and the new unemployment rate is ________
A) 100.1 million; 5.8 percent B) 100 million; 6.1 percent C) 94.1 million; 5.9 percent D) 93.9 million; 6.1 percent