The consumption function shows how much
A) households plan to consume per year at each possible interest rate.
B) real disposable income people will earn at each income tax bracket.
C) households plan to consume per year at each level of real disposable income.
D) households plan to consume per year at each level of savings.
C
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An example of a government policy to enhance technological progress is:
A. the provision of publicly-funded education. B. government support for basic research. C. the construction of an interstate highway system. D. maintaining a well-functioning legal system.
In the United States between 1973 and 2013, the inflation rate
A) increased every year. B) only decreased during the late 1990s. C) only increased during the late 1970s and 1980. D) peaked during the late 1970s and 1980 and was at its generally lowest in the 1990s and 2000s. E) has been relatively constant at approximately 4 percent to 6 percent per year.
The idea that some people engage in risky behavior due to the fact that they have good health care is known as
A) moral hazard. B) risk aversion. C) zero-sum game. D) risk-taking behavior.
The ways to address agency costs include
a. gathering information about the agent's characteristics before hiring b. gathering information about the agent's actions once hired c. incentivizing agents to work on behalf of principals d. all of the above