The relative income hypothesis, stating that MPC remains constant as national income increases, was proposed by
a. Keynes
b. Friedman
c. Duesenberry
d. Marshall
e. Modigliani
C
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The Cournot and Stackelberg models are similar, EXCEPT Cournot ________ and Stackelberg ________
A) sets price; sets output B) sets output; sets price C) is dynamic; is static D) is static; is dynamic
If a central bank reduced inflation by 2 percentage points and that made output fall by 1 percentage points for 2 years and the unemployment rate rise from 3 percent to 5 percent for 2 years, the sacrifice ratio is
a. 1/2. b. 1. c. 2. d. 4.
There is a side agreement to _______________ that calls for the enforcement of existing worker rights in _______________.
a. the European Union; the European nations b. the World Trade Organization; the less developed nations c. NAFTA; the South American nations d. NAFTA; Mexico, Canada, and the United States
Which of the following statements is FALSE?
A. The value of total output is identical to total income. B. Transactions in which households buy final goods and services occur in the factor market. C. One definition of total income is that it is the annual cost of producing the entire output of final goods and services. D. Saving is the difference between consumer income and expenditures.