The two parts of the Keynesian consumption function are consumption that depends on ________ and consumption that depends on ________.
A. planned spending; unplanned spending
B. real income; nominal income
C. money; wealth
D. disposable income; factors other than disposable income
Answer: D
You might also like to view...
Explain the difference between nominal wages and real wages
What will be an ideal response?
What would be the economic rationale for homeowners associations to host "yard of the month" awards?
What will be an ideal response?
Some of our farm fields are being left unused. Does this have any implications for the economy's PPF diagram (with agricultural products on one axis and all other products on the other axis)?
A) No implications, because the PPF deals only with resources in use. B) The PPF cannot be drawn if some resources are idle. C) With unemployed resources, we are at a point below the PPF. D) The PPF would be upward sloping.
Refer to the information provided in Scenario 36.5 below to answer the question(s) that follow.SCENARIO 36.5: The tiny nation of Bugaboo consists of two virtually identical islands, Achoo and Zoink, separated by the Strait of Dingo. The islands are similar in geography and population. The only telephone service on the islands is cellular, and the only cellular provider on the islands is the government-owned Bugaboo Communications Company, which charges a standardized rate of 20 Bugabucks per minute. Both islands add on an additional $5 Bugabucks-per-minute usage tax. As a way to increase revenue, the island governor of Zoink decided to increase the usage tax to $10 per minute, effective January 1, 2017. The average monthly cellphone usage per month is listed in the table below.?Average
Monthly Telephone Use per Resident (minutes)Island20162017Achoo4,5005,150Zoink4,8005,225Related to the Economics in Practice on p. 727: Refer to Scenario 36.5. Using the difference-in-differences method, what is the estimated effect of the increase in the usage tax on the average number of minutes used monthly per resident in Zoink? A. -225 B. -425 C. -650 D. -1,075