An unexpected decrease in nonlabor income will have a negative effect on a household's consumption.
Answer the following statement true (T) or false (F)
True
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If the marginal propensity to save (MPS) is 0.50, the value of the spending multiplier is:
a. 1. b. 2. c. 4. d. 9.
M1 money includes all but which one of the following?
a. Checkable deposits. b. Savings accounts. c. Paper money. d. Coins.
According to public choice theorists, people in the market sector and people in the public sector behave differently because
A) people in the two sectors have different motives. B) the two sectors have different institutional arrangements. C) government employees do not act in their own self-interest. D) there are economies of scale in the market sector.
According to New Keynesians, an increase in which of the following will tend to cause the inflation rate to increase?
A. anticipated future inflation B. an unexpected increase in aggregate demand C. firms' average inflation adjusted per-unit costs of production D. all of these