The relationship between planned consumption expenditures and the level of real disposable income is called
A. the investment function.
B. the aggregate demand function.
C. the consumption function.
D. the savings function.
Answer: C
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When one firm can supply many goods through simultaneous production at higher savings,
A. it has achieved peak production. B. it has vertically integrated. C. it has horizontal integration. D. it has economies of scope.
Economists who really do want to take discretion away from the Fed, by imposing rules on ________, face the problem of ________
A) policy instruments, the Fed requiring discretion to adhere to the rule B) policy instruments, slippages between instruments and target variables C) target variables, the Fed requiring discretion on how to achieve the rule D) target variables, slippages between instruments and target variables
If total cost is $1,000 when output is zero, and total cost is $1,200 when output is one, and total cost is $1,500 when output is two, then which of the following is true?
a. Total fixed cost is $1,500. b. The marginal cost of producing the first unit of output is $1,200. c. The marginal cost of producing the second unit of output is $300. d. The average fixed cost is $750 when two units of output are produced.
In the United States in the late 1970s, nominal interest rates were high and inflation rates were very high. As a result, real interest rates were
a. very high. b. high. c. low, but never negative. d. low, and in some years they were negative.