The relationship between consumer expenditures and disposable income is the:
a. savings function.
b. the tax rate function.
c. disposable income function.
d. consumption function.
d
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Refer to Scenario 9.1. The dominant strategy for Monty is to place ________ sheep on the commons
A) 4 B) 5 C) Monty's dominant strategy depends on how man sheep Sheb places on the commons. D) Monty has no dominant strategy.
New classical economists stress that an increase in government expenditures financed by borrowing rather than taxes will
a. exert a strong expansionary impact on aggregate demand and real output. b. affect the timing of taxes but not their magnitude. c. lead to higher interest rates. d. undermine confidence and reduce the level of private saving.
One reason goods inflation is preferred by policymakers is that it:
A. keeps the economy away from asset deflation. B. makes people richer. C. makes people see the importance of monetary policy. D. keeps the economy away from asset inflation.
(Consider This) The hedonic treadmill refers to a phenomenon where:
A. people can't improve their economic well-being because prices increase as fast as wages. B. people can't get out of debt because credit card companies use anchoring to get consumers to carry large balances on their accounts. C. increasing our level of consumption doesn't make us any happier in the long term. D. feelings of loss offset our feelings of gain, leaving us no happier in the long term.