The Permanent Income and Life-Cycle Hypothesis imply that
A. the primary determinant of current consumption is permanent income.
B. the primary determinant of permanent income is current consumption.
C. consumers generally favor current consumption over future consumption.
D. consumers are more likely to save if they are uncertain about the future.
Answer: A
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The cost to a member bank of borrowing from the Federal Reserve is the
Equilibrium in the market is where supply is equal to demand.
A. True B. False C. Uncertain
Consumption possibilities, during a given time period, refer to the
A. Maximum amount that a country can produce if it imports and does not export. B. Amount by which a country can expand its production possibilities by engaging in international trade. C. Maximum amount of imported goods and services that a country can consume. D. Alternative combinations of goods and services that a country could consume in a given period of time.
A nation's net exports consist of:
A. its exports plus its imports. B. its exports minus its imports. C. its exports plus all other nation's imports. D. its imports plus all other nation's exports.