According to Keynes, what is the most important determinant of households' spending on goods and services?
a. The price level.
b. The interest rate.
c. Autonomous consumption.
d. Disposable income.
d
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Prices of final goods and services in Eduland have increased by 23% between Year 1 and Year 2. If the GDP deflator of Eduland in Year 1 was 100, the GDP deflator of Eduland in Year 2 is ________
A) 50 B) 112 C) 103 D) 123
If traders in a market have rational expectations, then
A) the price of an asset equals its fundamental value. B) prices of riskier assets are higher than prices of less risky assets. C) past prices of assets do not affect market participants' expectations of future asset prices. D) they make use of less information than they would if they had adaptive expectations.
At any price the monopolist sets, it will sell:
A. as many as it wants. B. as many as demanders are willing to buy. C. more than a perfectly competitive market would sell. D. less than quantity demanded to keep the item rare.
Total output for an economy is basically equal to work-hours divided by labor productivity.
Answer the following statement true (T) or false (F)