According to the Life-cycle hypothesis, if a person received a payment roughly equals to her current income her consumption would:
A. increase by more than the increase in income.
B. would not increase at all.
C. increase, but not by as much as the increase in income.
D. roughly double.
Answer: C
You might also like to view...
Figure 4.3 illustrates the demand for tacos. A decrease in price of tacos would bring about a movement from
A) point a to point c. B) point c to point a. C) D2 to D0. D) D0 to D2.
Assume that the demand curve for MP3 players shifts to the right and the supply curve for MP3 players shift to the left, but the supply curve shifts less than the demand curve. As a result
A) both the equilibrium price and quantity of MP3 players will decrease. B) the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease. C) both the equilibrium price and quantity of MP3 players will increase. D) the equilibrium price of MP3 players may increase or decrease; the equilibrium quantity will decrease.
Specifically, what might cause the quantity demanded of a particular good to double at a particular price?
What will be an ideal response?
If the Fed decreases the monetary base by $100 million and the money multiplier is 4, M1 will
A) rise by $400 million. B) fall by $400 million. C) rise by $25 million. D) fall by $25 million.