Explain why the nation's MPC remains constant as national income increases
Duesenberry explained that consumption spending is rooted in status. If incomes increase, but relative
income positions remain the same, then everyone's MPCs will remain unchanged.
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The goal of the World Bank is to
A) sell the government securities of member nations on the open market. B) supervise exchange rate stability. C) help finance economic development. D) supervise the activities of the central banks of member nations.
Like Franklin D. Roosevelt (1933–45), William J. Clinton's (1993–2001) deficit-reducing tax hikes pushed the economy into a recession
Indicate whether the statement is true or false
A natural monopoly
a. is a monopoly in the production of raw materials. b. occurs when one firm can supply the entire market more cheaply than can a number of firms. c. is one result of a patent. d. results from decreasing returns to scale.
The aggregate demand curve is downward sloping because:
A. an increase in the price level will cause an increase in spending. B. at lower price levels, real wealth decreases, causing a decrease in the quantities of goods and services demanded. C. at lower price levels, interest rates decrease, causing a decrease in the quantities of goods and services demanded. D. at lower price levels, exports increase, causing an increase in real GDP.