Because of recent corporate downsizing, Chuck loses his job. The most likely effect on his consumption function is a(n)
a. movement downward along the function.
b. shift upward of the function.
c. shift downward of the function.
d. increase in consumption expenditures.
a
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Measures of concentration
A) refer to the concentration of customers in a certain area. B) measure whether the market is dominated by a small number of firms. C) measure the concentration of a large number of firms in a certain area. D) have high values for perfect competition. E) measure how concentrated a firm's sales are among certain types of goods.
In the "cost of capital channel" of monetary policy, a higher interest rate __________ spending
A) raises consumption B) raises investment C) lowers consumption D) lowers investment
If the government imposes a pollution tax on gasoline refineries: a. the supply of gasoline will shift to the right. b. the demand for gasoline will shift to the right. c. the supply of gasoline will shift to the left
d. the demand for gasoline will shift to the left.
Which of the following would be most likely to cause an increase in current aggregate demand in the United States?
a. increased fear that the U.S. economy was going into a recession b. an increase in the real interest rate c. sharp increase in the value of stocks owned by Americans d. a recession in Canada, Mexico, and Western Europe