Household consumption primarily depends on:
A) disposable income.
B) the interest rate.
C) marginal propensity to import.
D) credit card debt.
A
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If strong aggregate demand is pushing the economy beyond potential real GDP, which of the following must be true?
A) Expansionary monetary policies will push the economy back to the long-run Phillips curve. B) The economy is at an equilibrium that is not on the long-run Phillips curve. C) The economy is at an equilibrium that is on the long-run aggregate supply curve. D) The economy is at an equilibrium that is on the long-run Phillips curve.
The purpose of a financial sector is ________
A) to minimize the payments firms make to state and local governments B) to maximize the payments firms make to state and local governments C) to channel funds away from households and firms with surplus funds D) to channel monies into socially acceptable causes
Which of the following holds true?
A) When the Marginal Product (MP) is rising, Marginal cost (MC) is rising; and when MP is falling, MC is falling. B) When MP is rising, MC is falling, and when MP is falling, MC is rising. C) When MP is rising, MC is constant, and when MP is falling, MC is negative. D) There is no relationship between MP and MC.
Inflows of immigrant workers tend to reduce the wages of domestic-born workers. Under which of the following circumstances is this least likely to occur?
A. Migration between countries is unimpeded. B. Immigrant workers make remittances to their home country. C. Immigrant workers and domestic-born workers are substitute resources. D. Immigrant workers and domestic-born workers are complementary resources.