Autonomous consumption is equal to
a) saving when consumption equals disposable income
b) consumption when disposable income is zero
c) consumption caused by an increase in disposable income
d) dissaving when disposable income is greater than zero
b) consumption when disposable income is zero
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The opportunity cost of an action is:
a. the monetary payment the action required. b. the total time spent by all parties in carrying out the action. c. the value of the best opportunity that must be sacrificed in order to take the action. d. the cost of all alternative actions that could have been taken, added together.
The aggregate supply/aggregate demand model is used to help understand...
What will be an ideal response?
Answer the following questions true (T) or false (F)
1. Since World War II, the Federal Reserve has not been involved in carrying out monetary policy. 2. Inflation rates during the years 1979-1981 were the highest the United States has ever experienced during peacetime. 3. The main goal of monetary policy for recent Fed Chairmen has been to maintain high employment in labor markets.
The interest parity condition indicates that the interest differential is equal to the
A) risk premium. B) forward premium. C) futures premium. D) arbitrage premium.