According to this Application, falling home equity values have decreased consumer wealth, which is a measure of a consumer's
A) total net worth. B) annual income.
C) annual income minus total expenses. D) annual income minus annual expenses.
A
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The CPI was 225 in 2008 and 232.2 in 2009. The nominal interest rate during this period was 1.4 percent. What was the real interest rate during this period?
A) 3.2 percent B) 1.8 percent C) 4.6 percent D) -3.2 percent E) -1.8 percent
Those who favor passive policymaking argue that all of the following exist EXCEPT
A. pure competition is typical. B. the trade off between inflation and unemployment is not stable in the short run and is non-existent in the long run. C. aggregate demand shocks can influence real Gross Domestic Product (GDP) and unemployment. D. perfectly flexible wages and prices.
Assume households have positive wealth. If the income effect is greater than the substitution effect, a decrease in interest rates will
A. increase both saving and consumption spending by households. B. decrease saving and increase consumption spending by households. C. increase saving and decrease consumption spending by households. D. decrease both saving and consumption spending by households.
Which of the following statements about tariffs is true?
A. The revenue gained from tariffs equals the total cost that tariffs impose on consumers. B. The costs of tariffs are proportionately higher for high-income groups than for low-income groups. C. U.S. consumers lose more from tariffs than U.S. producers gain. D. U.S. producers gain more from tariffs than U.S. consumers lose.