Keynes assumed consumption is
A) inversely related to the rate of interest.
B) directly related to disposable income.
C) directly related to investment.
D) less than disposable income.
E) both b and d
B
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Refer to Figure 18.2. Macadamia has a comparative advantage in the production of
A) spears. B) fishing poles. C) both spears and fishing poles. D) neither spears nor fishing poles.
Which of the following will make it more difficult for the United States to control the growth of the federal debt in the decade ahead?
a. Debt financing makes it possible for elected political officials to provide voters with highly visible current benefits without having to impose visible current cost in the form of higher taxes. b. The movement of the large baby-boom generation into the retirement phase of life will make it more difficult to control federal spending. c. The recent growth of the federal debt as a share of GDP will mean higher interest costs in the future. d. All of the above.
Corrective taxes are more efficient than regulations for keeping the environment clean
a. True b. False Indicate whether the statement is true or false
When the price level falls
a. people want to hold more money. b. the interest rate rises. c. investment spending rises. d. All of the above are correct.