(Advanced analysis) The equation C = 35 + .75Y, where C is consumption and Y is disposable income, shows that:
A. households will consume three-fourths of whatever level of disposable income they
receive.
B. households will consume $35 if their disposable income is zero and will consume three-
fourths of any increase in disposable income they receive.
C. there is an inverse relationship between disposable income and consumption.
D. households will save $35 if their disposable income is zero and will consume three-fourths
of any increase in disposable income they receive.
B. households will consume $35 if their disposable income is zero and will consume three-
fourths of any increase in disposable income they receive.
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Nominal GDP is calculated by using
A. prices set in a base year. B. average prices in all major cities. C. current prices. D. prices charged by initial producers.
The definition of Gross Domestic Product is
a. the total value of all sales in the economy. b. the total value of production in the domestic economy plus the production of domestic firms in foreign countries. c. the total value of all sales of final and intermediate goods in the domestic economy. d. the total of the money values of all final goods and services produced in the domestic economy within a specific time period.
Natural gas found in Oklahoma is an example of
A. physical capital. B. human capital. C. labor. D. land.
Which of the following programs involves the Federal Reserve directly purchasing short-term lending instruments from corporations?
A. Term Asset-Backed Securities Loan Facility. B. Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility. C. Commercial Paper Funding Facility. D. Term Securities Lending Facility.