Politicians often instruct households to spend in order to help the economy. This advice overlooks the fact that
a. increases in consumption will make it easier for households to deal with unanticipated future expenses.
b. increases in consumption will provide more loanable funds for investment.
c. you cannot have a strong economy if all or most households are spending just about everything they earn.
d. consumer spending is less than two-thirds of GDP.
C
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An increase in immigration will lower the equilibrium wage, all else held constant
a. True b. False Indicate whether the statement is true or false
Answer the question on the basis of the following information. Suppose the members of population A, consisting of Al, Bob, Curt, Doris, and Ellie, receive annual incomes of $5,000, $2,500, $1,250, $750, and $500, respectively. Refer to the given
information. What percentage of total income is received by the lowest 60 percent of the income receivers in population A? A. 60. B. 50. C. 25. D. 20.
Jeremy is thinking of starting up a small business selling NASCAR memorabilia. He is considering setting up his business as a sole proprietorship. What is one disadvantage to Jeremy of setting up his business as a sole proprietorship?
A) As a sole proprietor, Jeremy would be taxed twice. B) As a sole proprietor, Jeremy would not have control of the business. C) As a sole proprietor, Jeremy would face unlimited liability. D) As a sole proprietor, Jeremy would be subject to significant rules and regulations.
If the marginal product of labor is less than the average product of labor, then the
A. marginal product must be increasing. B. average product must be decreasing. C. marginal product must be decreasing. D. Both B and C