In the above figure, a movement from point B to point C could be explained by
A. the real-balance effect.
B. increased government spending.
C. an increase in the price level.
D. a decrease in the quantity of money in circulation.
Answer: B
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The consumption function becomes flatter if:
a. the average propensity to spend increases. b. the marginal propensity to spend increases. c. the marginal propensity to save increases. d. the autonomous consumption increases. e. the autonomous consumption decreases.
In setting reserve requirements, the Fed divides deposits into which of the following two broad categories?
a. NOW accounts and ATS accounts b. savings accounts and non personal time accounts c. transaction accounts and non personal time accounts d. check able deposits and transaction accounts
Since the 1980s, banks and thrifts have lost their share of the financial services industry and control over financial assets.
Answer the following statement true (T) or false (F)
Recall the Application about the effects of increasing state level Earned Income Tax Credit (EITC) on child health in the United States to answer the following question(s).Recall the Application. Earned Income Tax Credit improves child health because:
A. it increases employment and hence, health benefits. B. it increases income resulting in higher health expenditures. C. it forces children to work so they can get health insurance. D. it increases employment and hence, health benefits and it increases income resulting in higher health expenditures are both correct.