The relationship in the above figure indicates that
A) a decrease in the interest rate leads to a decrease in household income.
B) a decrease in household consumption leads to a decrease in interest rates.
C) a decrease in household income will lead household consumption to increase.
D) none of the above.
D
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Adaptive expectations are formed ________
A) from experience B) from best guesses about the future C) as new information becomes available D) as a weighted average of expert forecasts
All of the following are characteristics of a proprietorship EXCEPT
A) the business is owned by one individual. B) one person is responsible for all the debts of the firm. C) one person gets all of the profits. D) the firm can form a corporation to protect itself against the debts.
Imports are leakages from the circular flow of income and expenditure model
a. True b. False Indicate whether the statement is true or false
Laid-off auto workers in Detroit need to be trained for jobs in other industries where there is more labor demand. In the meantime, they are out of work. This is an example of:
a) Structural unemployment b) Frictional unemployment c) Cyclical unemployment d) Natural unemployment