Upon what is your current consumption dependent according to Milton Friedman?
A. The future value of your present income.
B. The present value of your lifetime income.
C. The income you expect to earn later in life.
D. The income you earn today.
Answer: B
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Increasing the amount of consumption spending and reducing the amount of savings ________ investment expenditures, and ________ long-run economic growth in the economy
A) decreases; increases B) increases; decreases C) increases; increases D) decreases; decreases
When the Federal Reserve sells assets from its portfolio to the public with the intent of changing the money supply,
a. those assets are government bonds and the Fed's reason for selling them is to increase the money supply. b. those assets are government bonds and the Fed's reason for selling them is to decrease the money supply. c. those assets are items that are included in M2 and the Fed's reason for selling them is to increase the money supply. d. those assets are items that are included in M2 and the Fed's reason for selling them is to decrease the money supply.
Joe is the owner of the 7-11 Mini Mart, Sam is the owner of the SuperAmerica Mini Mart, and together they are the only two gas stations in town. Currently, they both charge $3 per gallon, and each earns a profit of $1,000. If Joe cuts his price to $2.90 and Sam continues to charge $3, then Joe's profit will be $1,350, and Sam's profit will be $500. Similarly, if Sam cuts his price to $2.90 and Joe continues to charge $3, then Sam's profit will be $1,350, and Joe's profit will be $500. If Sam and Joe both cut their price to $2.90, then they will each earn a profit of $900.The clear outcome of this game is that:
A. neither Joe nor Sam will cut his price. B. Sam will cut his price and Joe won't. C. both Joe and Sam will cut their price. D. Joe will cut his price and Sam won't.
What is the value of $F (the total new checkable deposits)?
A) $1,000 B) $4,000 C) $5,000 D) $6,000