Explain why current consumption might change even if current income does not change
What will be an ideal response?
C also depends on wealth. If any of the determinants of wealth change, without current disposable income changing, individuals will change current consumption. In short, there are other determinants of current consumption.
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Which of the following usually leads to currency appreciation?
A. Galloping inflation B. Relatively low interest rates C. Declining real GDP D. Fixed exchange rates
Which of the following lowers the current price of an nonrenewable natural resource?
A) an increase in the interest rate B) a decrease in the stock of the resource C) an increase in the marginal revenue product of the resource D) an increase in the price of a substitute resource
If the North American newsprint paper market is a monopoly, then: a. abnormally high profits will attract the entry of new firms
b. the entry of new firms will eventually cause price to decline. c. the quantity produced in the market is larger than the socially optimal level of output. d. entry will remain blocked even if the monopolist earns high profits in the short run.
Which of the following gave the Federal Trade Commission responsibility to protect the public against false and misleading advertising?
A. Celler-Kefauver Act of 1950. B. Wheeler-Lea Act of 1938. C. Clayton Act of 1914. D. Sherman Act of 1890.