The most important determinant of consumption and saving is the:
A. level of bank credit.
B. level of income.
C. interest rate.
D. price level.
B. level of income.
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A tariff is imposed on a good. This will ________ the domestic producer surplus, ________ the domestic consumer surplus, and ________ total surplus in the home country
A) increase; decrease; decrease B) increase; decrease; increase C) increase; remain unchanged; increase D) increase; increase; increase
Use the graph above to answer the following question. What can we conclude about the attitude towards risk this individual is portraying given this utility function?
What will be an ideal response?
Do people make decisions on the basis of the nominal interest rate or the real interest rate? What is the relationship between the two interest rates?
What will be an ideal response?
Figure 10-6
?
In Figure 10-6, the price at long-run equilibrium is
A. $5. B. $10. C. $20. D. $35.