The research by Robert Hall on the theory of consumption suggests that the best forecast of consumption for next year would be
A) unpredictable.
B) random.
C) this year's consumption.
D) last year's consumption.
C
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Actual investment spending does not include
a. spending on consumer durable goods. b. spending on new capital equipment. c. spending on new houses. d. changes in inventories.
The effectiveness of any stimulus program depends on:
a. the nature of the tax only b. the size of the tax and spending multipliers c. the nature of the tax and tax multipliers d. the income group targeted e. the marginal propensity to consume only
A Japanese bank buys bonds sold by Minnesota Manufacturing. Minnesota Manufacturing then uses these funds to buy machinery from Canada. Which of the following decreases?
a. U.S. net exports but not US net capital outflow b. U.S. net capital outflow but not U.S. net exports c. U.S. net exports and U.S. net capital outflow d. neither U.S. net exports nor U.S. net capital outflow
The difference between the national debt and a federal budget deficit is
What will be an ideal response?