Which one of the following will shift the consumption function upward?
a. Higher interest rates.
b. Expectations that the economy will grow in the future.
c. A decrease in money holdings.
d. Higher capacity utilization rates.
e. A tax increase.
b
You might also like to view...
If a rise in the price of good B increases the quantity demanded of good A
A) A and B are substitutes. B) A and B are complements. C) A is a substitute for B, but B is a complement to A. D) B is a substitute for A, but A is a complement to B.
An increase in the real interest rate results in which of the following?
A) an increase in the demand for loanable funds B) a decrease in the demand for loanable funds C) an increase in the quantity of loanable funds supplied D) Both B and C will occur as a result of an increase in the real interest rate.
"Crowding out" refers to federal government deficits financed by:
a. borrowing which increases interest rates and thereby reduces private spending. b. increasing taxes which reduces private spending. c. the federal government buying foreign debt which reduces the amount of government spending and government programs. d. reducing government spending which reduces interest rates.
New classical economists believe that government intervention is _____________.
Fill in the blank(s) with the appropriate word(s).