The slope of the linear consumption function represents autonomous consumption expenditures
Indicate whether the statement is true or false
FALSE
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The stock market collapse of 1929 might have been averted had large corporations maintained their participation in the market for securities loans in 1925–1929
Indicate whether the statement is true or false
Suppose the market for autoworkers is initially in equilibrium, but then the demand for automobiles increases and simultaneously the automakers allow autoworkers less flexibility working at the plants. What happens in the market for autoworkers?
A) The equilibrium wage rate will increase and the equilibrium quantity of labor will increase, decrease or stay the same. B) The equilibrium wage rate will increase, decrease or stay the same and the equilibrium quantity of labor will increase. C) The equilibrium wage rate and the equilibrium quantity of labor will both decrease. D) The equilibrium wage rate will decrease and the equilibrium quantity of labor will increase.
If the growth rate of the money supply were 4% and the growth rate of the velocity of money were 2%, then which of the following could be a point on the aggregate demand curve?
A. Inflation of 3% and real growth of 3% B. Inflation of 6% and real growth of 6% C. Inflation of 4% and real growth of 4% D. Inflation of 2% and real growth of 2%
If the interest rate increases, then the:
A. economy will move to a new point along the existing consumption function. B. consumption function will shift up. C. consumption function will shift down. D. investment demand curve will shift up.