A rising price level decreases consumption by decreasing the real value of household wealth
Indicate whether the statement is true or false
TRUE
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According to the life-cycle hypothesis, if a person wants consumption to be constant over her lifetime, she will smooth consumption by initially ________ over her lifetime
A) saving, then dissaving, then borrowing B) borrowing, then saving, then dissaving C) dissaving, then borrowing, then saving D) saving; then borrowing; then dissaving
Which of the following abilities should an economic model possess?
a. It should lower the time cost of information collection. b. It should help individuals to discern the information that matters for a problem. c. It should be able to process both untrue or impossible to verify information as well as correct information in the data set. d. It should suggest accurate solutions for a problem.
Which of the following is a characteristic of bonds?
A) pay zero nominal interest B) can be used for transactions C) are sold for a price that varies inversely with the interest rate D) all of the above E) none of the above
National income equals gross domestic product
A) plus sales taxes. B) plus government transfer payments. C) minus the consumption of fixed capital. D) minus government transfer payments.