Figure 10-6
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In Figure 10-6, which graph best illustrates an autonomous increase in consumption spending?
A. (1)
B. (2)
C. (3)
D. (4)
Answer: A
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Average duration of unemployment is an example of a:
A) leading indicator. B) coincident indicator. C) lagging indicator. D) none of the above.
Benefits today cannot be directly compared with costs in the future because:
A. money today is worth more than money in the future. B. people do not have perfect willpower and will waste money today. C. investments aren’t always profitable. D. more information is needed to make investment decisions than is typically available.
In the United States, the labor-force participation rate since 1960 has been
A. declining for both males and females. B. unchanged for both males and females. C. declining for females. D. increasing for females.
If the Fed's policy reaction function equals r = .02 + ?, where r is the real interest rate and ? is the inflation rate. When the inflation rate is at the current target of 2 percent, then the real interest rate will be set at:
A. zero. B. 6 percent. C. 2 percent. D. 4 percent.