A decrease in disposable income will
a. lead to an upward movement along the consumption function.
b. lead to a downward movement along the consumption function.
c. shift the consumption function upward.
d. shift the consumption function downward.
b
You might also like to view...
The value of the real estate that a bank uses for its operations will be included in the bank's:
A) cash equivalents. B) reserves. C) short-term borrowing. D) long-term investments.
Prior to and during the period of American colonization, the following occurred in Europe:
(a) Feudal rulers found it easy to force peasants and urban producers to work for them as long-distance trade expanded, the costs of warfare increased, and the land/labor ratio increased as consequence of the bubonic plague. (b) Feudal lords shared profits from output with the peasantry and pumped them into investment expenditures, which accelerated agricultural growth. (c) Conflict among lords and peasants led to many peasant and urban revolts, diverting resources away from production and investment. (d) Financial stability enabled the nobility of Europe to foster growth among feudal lands and increase the riches of both rulers and peasants, producing a period of high economic growth.
Policies adopted by the Truman administration effectively avoided inflation during the Korean War. These policies included:
a. increased personal and corporate tax rates. b. price and wage controls. c. reduced purchases of government debt by the Federal Reserve. d. discontinuance of the practice of "pegging" interest rates. e. All of the above.
Assume that the average male wage rate is 20 percent higher than the average female wage rate. One can infer that:
A. customers overvalue male employers, so employers pay males more. B. this is evidence of discrimination because females should be paid the same as males. C. this is evidence of discrimination only if all factors affecting productivity are equal. D. employers undervalue female employees, so they're able to pay them less.