If consumption spending increases because people feel more confident about the future,
A) aggregate demand will shift to the left.
B) aggregate demand will shift to the right.
C) aggregate supply will shift to the left.
D) aggregate supply will shift to the right.
B
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When consumption spending is greater than disposable income, we know with certainty that we have
A) dissaving. B) negative net investment. C) excess thrift. D) positive savings.
When the real interest rate falls, there is
A) an upward shift of the consumption function. B) an increase in the slope of the consumption function. C) a movement upward along the consumption function. D) a decrease in the slope of the consumption function. E) a downward shift of the consumption function.
How do economic profits and losses allocate resources in an economy?
What will be an ideal response?
The EEC is a group of
a. South American countries b. Eastern European countries c. Asian countries d. Middle Eastern countries e. Western European countries