Which of the following statements is true?
a. When a change in income causes consumption to change, the consumption-income line shifts; however, when anything besides income changes, we move along the line.
b. When a change in income causes consumption to change, we move along the consumption-income line; however, when anything besides income changes, the line shifts.
c. When income or anything else affecting consumption changes, we move along the consumption-income line.
d. When income or anything else affecting consumption changes, the consumption-income line shifts.
e. There is no way to determine, without more information, whether a change in income or anything else will shift the consumption line or cause movement along the consumption-income line.
B
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Which of the following scenarios is an example of an investment in human capital?
A. A firm replaces manually controlled production with a computer-controlled procedure. B. A chemical firm supports research to develop new chemicals. C. A firm purchases new equipment for a manufacturing process. D. A firm pays for workers to take college classes.
Assuming an decrease in money demand, then to keep interest rates constant the Fed must
a. keep the money supply constant. b. conduct an open market sale of bonds. c. reduce the required ratio. d. both b and c. e. None of the above
Advertising that has the fine print "professional driver on a closed course,"
A) is likely engaged in persuasive advertising. B) is likely engaged in informative advertising. C) is likely engaged in strategic advertising. D) is likely engaged in false advertising.
In calculation of squared forecast errors, an error of +3 yields a loss three times greater than an error of ?1.
Answer the following statement true (T) or false (F)