The consumption function implies that
A. Consumption increases as disposable income increases.
B. Autonomous consumption changes when people have low incomes.
C. Disposable income inversely influences consumption.
D. None of the choices are correct.
Answer: A
You might also like to view...
The excess reserves ratio is ________ related to expected deposit outflows, and is ________ related to the market interest rate
A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively
Is it possible to have a GDP deflator of less than 100?
A. Yes, it would indicate a year when prices were lower than in the base year. B. Yes, it would indicate a year when output was lower than in the base year. C. No, that is mathematically impossible for the deflator to be less than 100. D. Yes, it would indicate a year when prices were lower than in the previous year.
The demand for capital, as an input in production, will decrease if:
a. labor and capital are substitutes in production and the supply of labor decreases. b. the demand for the final good it produces increases. c. capital becomes more productive. d. the price of capital decreases. e. labor and capital are substitutes in production and the wage rate declines.
The Commodity Credit Corporation
a. advises farmers what goods to produce b. makes loans to farmers and accepts farm goods in repayment for the loan c. provides credit to farmers who cannot otherwise get credit from commercial banks d. buys farms goods directly from farmers and sells them to consumers e. provides cash payments to farmers who put their acreage into soil banks