Which one of the following will cause a movement down along an economy's consumption forecast?
A. an increase in stock prices
B. a decrease in stock prices
C. an increase in consumer indebtedness
D. a decrease in disposable income
Answer: D. a decrease in disposable income
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If low-quality workers are unable to obtain a college degree, then a separating equilibrium can occur if
A) the cost of obtaining a degree is less than the wage premium paid to those who have obtained the degree. B) the cost of obtaining a degree is greater than the wage premium paid to those who have obtained the degree. C) the cost of obtaining a degree is zero. D) the wage premium paid to those who have obtained the degree is positive.
Two years ago Lenny put some money into an account. He earned 6 percent interest on this account and now he has about $1,000 . About how much did Lenny deposit into his account two years ago?
a. about $860 b. about $870 c. about $880 d. about $890
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.
Suppose a person has a discount rate of zero. This implies she
A) places no value on the future. B) places no value on the present. C) values the present and the future equally. D) would not lend money at any positive interest rate.