All of the following shift the consumption function upward EXCEPT
A. an expectation of better economic conditions.
B. an increase in wealth.
C. a decrease in the rate of interest.
D. an increase in income.
Answer: D
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Refer to the graph shown. Initially, the market is in equilibrium with price equal to $25 and quantity equal to 100. As a result of a per-unit tax imposed by the government, the supply curve shifts from S0 to S1. The effect of the tax is to:
A. reduce producer surplus by $400. B. give government tax revenues of $400. C. reduce producer surplus by $375. D. give government tax revenues of $100.
For perfectly competitive firms, price
A. And marginal revenue are not related. B. Is less than marginal revenue. C. Is equal to marginal revenue. D. Is greater than marginal revenue.
Which of the following statements is most correct?
A. The higher the deposit insurance limit the greater the risk of moral hazard. B. Deposit insurance limits do not impact moral hazard, they impact adverse selection. C. Increasing the deposit insurance limits above $100,000 would increase coverage for over 50 percent of all depositors. D. The higher the deposit insurance limit the lower the risk of moral hazard.
According to Okun's law, if output grew 7% and full-employment output rose 5%, what would be the change in the unemployment rate?
A. -1 percentage point B. 1 percentage point C. 4 percentage points D. -4 percentage points