Historical data shows that if consumption increases by $80 billion when national income rises from $100 billion to $200 billion, then consumption will increase by less than $80 billion when national income rises from $200 billion to $300 billion
Indicate whether the statement is true or false
F
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If indifference curves and budget lines are used to analyze consumer choice, an inferior good will
A. escape detection when income rises. B. be easily identified because the quantity purchased will fall as income rises. C. be easily identified because the quantity purchased will rise as income rises. D. be easily identified because it will change the slope of the budget line. E. escape detection because this model does not show that relationship.
The rule of 72 implies that a country will double its income in about 4 years if its growth rate is:
A. 25 percent. B. 18 percent. C. 8 percent. D. 12 percent.
The slope of the consumption function equals the marginal propensity to consume
a. true b. false
When the Russian government defaulted on its bonds in August 1998:
A. risk spreads did not change. B. risk spreads decreased significantly. C. yields on U.S. Treasury securities fell while yields on corporate bonds rose. D. yields on U.S. Treasury securities rose while prices of corporate bonds rose.