When we use ordinary least squares to determine the relationship between changes in consumption and changes in both current and lagged income, we find that
A) only current income influences current consumption.
B) current income has no impact on current consumption.
C) consumption is not affected by income in any quarter.
D) current income, last quarter's income, and income two quarter's ago all have the same impact on current consumption.
E) current income has a greater impact on consumption than income lagged one quarter.
E
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In the figure, the equilibrium price is initially $3 per bushel of wheat. If buyers come to expect that the price of a bushel of wheat will rise in the future, but sellers do not, the current equilibrium price will
A) rise. B) not change. C) fall. D) Perhaps rise, fall, or stay the same, depending on whether there are more demanders or suppliers in the market.
Investment tax credits (ITCs) are _________ the firm's tax bill when particular capital assets are purchased.
A. deducted from B. added to C. close to zero for D. none of these answer options are correct.
The fundamental value of a stock equals
A) the future value of all future dividends. B) the present value of all future dividends. C) the present value of current and future dividends. D) the present value of all future capital gains.
If gas prices suddenly change from $2 a gallon to $4 a gallon, local stores with higher prices are ________ to have a(n) ________ in the number of customers.
A) not likely; change B) not likely; increase C) likely; increase D) likely; decrease