Household consumption depends on both income and interest rates. In the above figure
A) household consumption is held constant.
B) interest rates are held constant.
C) household income is held constant.
D) no variable is held constant.
C
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Which of the following statements is true of the quantity theory of money?
A) The theory explains the relationship between growth in real GDP and changes in nominal interest rates. B) The theory states that inflation will always be positive. C) Predictions of the theory can be verified with data. D) The theory is applicable only in the short run.
Which of the following items does not provide a store of value?
a. Currency. b. Checkable deposits. c. Credit cards. d. All of these are correct.
In the above figure, if the government imposed a minimum wage of $8 per hour in this labor market, the increase in the hourly wage for those who are able to keep their jobs is
A) $2 per hour. B) $4 per hour. C) $6 per hour. D) $8 per hour.
In the circular-flow diagram, which of the following items flows from firms to households through the markets for the factors of production?
a. goods and services b. land, labor, and capital c. dollars spent on goods and services d. wages, rent, and profit