The relationship between planned consumption and real disposable income is referred to as
A. the multiplier.
B. the wealth function.
C. the saving function.
D. the consumption function.
Answer: D
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Use the following table to answer the next question. All figures below are in billions of dollars.Domestic Output or Income (RGDP = DI)Consumption$240$244250250260256270262280268290274300280310286320292If gross investment is $12 billion, the equilibrium level of real GDP will be
A. $270 billion. B. $280 billion. C. $260 billion. D. $290 billion.
The U.S. economy is experiencing falling output, falling employment, falling incomes and rising unemployment. These conditions best describe a business cycle ________
A) peak B) expansion C) recession D) trend E) trough
Marginal revenue product is essentially the additional revenue generating from selling one additional unit of output.
Answer the following statement true (T) or false (F)
Refer to the normal-form game of advertising shown below.Firm AFirm B??AdvertiseDo Not Advertise?Advertise$0,$0$175,$10?Do Not Advertise$10,$175$125,$125Suppose there is a 90 percent chance that the advertising game depicted in Figure 10-17 will end next period. The collusive agreement {(not advertise, not advertise)} is:
A. sustainable since $11.11 > $50. B. sustainable since $175 < $138.89. C. unsustainable since $11.11 > $50. D. unsustainable since $175 < $138.89.