In a stock market boom ________
A) autonomous consumption might increase because stock holders might feel richer and consume more
B) autonomous investment might increase because a higher stock value for a firm helps firms raise funds for increased investment
C) the IS curve might shift to the right
D) all of the above
E) none of the above
D
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Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, which is India's most likely future PPF?
A) PPF1 B) PPF2 C) PPF0 D) either PPF0 or PPF1 E) None of the above because economic growth will not happen in India.
Suppose that in 2016, the national income in the United States was $200 billion, depreciation was $15 billion, personal taxes were $20 billion, and transfer payments were $10 billion. Gross domestic product in 2016 is
A) $185 billion. B) $215 billion. C) $220 billion. D) $245 billion.
In the short run, efforts to reduce the unemployment rate are likely to cause
a. a decrease in the inflation rate. b. an increase in the inflation rate. c. no change in the inflation rate. d. Uncertain-economists have found no relationship between the two variables.
According to Adam Smith's theory of absolute advantage, who benefits from engaging in trade
What will be an ideal response?