Refer to the information provided in Table 23.3 below to answer the question(s) that follow. Table 23.3
Refer to Table 23.3. The equation for the aggregate consumption function is
A. C = 200 + 0.3Y.
B. C = -200 + 0.2Y.
C. C = 200 + 0.8Y.
D. C = 200 + 0.75Y.
Answer: D
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Economists who believe that real GDP may grow slowly because of insufficient demand for investment spending cite three main reasons for the low demand for loanable funds. Which of the following is not one of those reasons?
A) a reduced demand for housing due to slowing population growth B) the continued decrease in the value of the dollar relative to the currencies of major U.S. trading partners C) a smaller capital requirement for modern information technology firms D) the falling price of capital relative to other goods
Which of the following could trigger supply-side inflation?
a. a decrease in the wage rate for all workers b. an increase in raw materials' prices c. an increase in productivity of capital d. an increase in the labor force
Pepsi and pizza are normal goods. When the price of pizza rises, the substitution effect causes Pepsi to be relatively
a. more expensive, so the consumer buys more Pepsi. b. more expensive, so the consumer buys less Pepsi. c. less expensive, so the consumer buys more Pepsi. d. less expensive, so the consumer buys less Pepsi.
People will buy more if the price level
a. rises because rising prices increase the real value of a dollar. b. rises because rising prices decrease the real value of a dollar. c. falls because falling prices increase the real value of a dollar. d. falls because falling prices decrease the real value of a dollar.