A consumption bundle is affordable as long as:
A. it is a point that is on an indifference curve that is to the right of the budget line.
B. it is a point that falls on the 45 degree line.
D. the amount of the good consumed from year to year does not increase.
C. the present discount value of the consumption stream is less than the present discount value of the income stream.
You might also like to view...
If Sam has $60.00 each week to spend on gasoline and coffee, and their respective prices are $1.50 per gallon and $3.00 per pound, which of the following equations represents his budget line?
A) $60.00 = $1.50/Qg + $3.00/Qc B) $60.00 = Qg /$1.50 + Qc /$3.00 C) $60.00 = $1.50(Qg) + $3.00(Qc) D) $60.00 = $1.50(Qg) - $3.00(Qc)
In the first half of 2008, food and energy costs in the United States increased. At the same time, the financial crisis slowed production as firms predicted lower profits. A ________ macroeconomist would support the use of ________
A) classical; taxes to push the economy back to full employment B) Keynesian; fiscal or monetary policy to stimulate aggregate demand C) classical; monetary policy to stimulate aggregate demand D) Keynesian; technology to push the economy back to full employment
Keynesians view changes in velocity as the result of changes in
a. income. b. expectations. c. interest rates. d. inflation. e. all of the above.
When considering the change to the money demand curve, if the interest rate rises, the quantity demanded is:
A. lower, moving rightward along the money demand curve. B. lower, moving leftward along the money demand curve. C. higher, moving leftward along the money demand curve. D. higher, moving rightward along the money demand curve.