The permanent-income hypothesis can reconcile the cross-section and time-series consumption studies by incorporating the reasonable assumption that at any one time many people are poor because they have ________ transitory income, causing them to
have an unusually ________ saving ratio. A) positive, high
B) positive, low
C) negative, high
D) negative, low
D
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An example of fiscal policy is
A) a reduction in government spending. B) an increase in autonomous spending by consumers. C) a reduction in investment spending by the private sector. D) an increase in Social Security spending by the elderly.
All of the following are examples of electronic funds EXCEPT
A) credit cards. B) debit cards. C) stored value cards. D) e-cash.
The demand for durable goods tends to be more price elastic than the demand for non-durables
a. true b. false
The Fed can influence the money supply by
a. changing how much it lends to banks. b. changing the interest rate it pays banks on the reserves they are holding. c. using open-market operations. d. All of the above are correct.