Pat Robertson, a TV evangelist and former Republican Party candidate for president, once said that “debt is an affront to God,” so good Christians should not spend beyond their incomes. Indeed, Robertson wants Christians to save more. If more Americans, Christians as well as others, took his message seriously, how would we represent the result using a Keynesian macroeconomic model?
A. A downward movement along the consumption function
B. An upward movement along the consumption function
C. A downward shift of the consumption function
D. An upward shift of the consumption function
Answer: C
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Final goods and services refer to ________.
A. goods and services that are unsold and therefore added to inventories B. goods and services purchased by ultimate users, rather than for resale or further processing C. goods and services whose value has been adjusted for changes in the price level D. the excess of U.S. exports over U.S. imports
As a measure of competition in an industry, concentration ratios have several flaws. One of these flaws is that concentration ratios
A) are calculated for the national market, even though competition in some industries is mainly local. B) assume that all industries have low barriers to entry. C) assume that a ratio less than 40 percent means an industry is perfectly competitive. D) assume there are only four firms in an industry.
Apart from the United States, in countries where central bank board members serve fixed terms of office,
A) none have terms as long as fourteen years. B) many serve for life or good behavior. C) all have terms longer than fourteen years. D) the head of the central bank rarely has a term longer than one year.
Refer to Figure 2-10. If this economy put all available resources into the production of bananas, it could produce
a. 200 bananas and also 150 baseballs. b. 300 bananas and also 100 baseballs. c. 400 bananas and no baseballs. d. It is impossible to know unless we know the quantity of resources available.