Standard life-cycle analysis predicts that a stock market crash that suddenly reduces the sale value of stocks ________ consumption expenditures
A) reduces
B) increases
C) has no effect on
D) All of the above are possible with a market crash.
A
You might also like to view...
Which of the following statements about the classical model of the economy is FALSE?
A) Individuals pursue the public interest, not their own self-interest. B) The economy will always move toward, or be at, full employment. C) Savings and investment will always be equal. D) Wages and prices are flexible.
Suppose a 20 percent increase in the price of gasoline results in a 25 percent increase in the quantity supplied. This response means that gasoline has
A) an elastic supply. B) an inelastic supply. C) a unit elastic supply. D) an inelastic demand. E) an elastic demand.
Which of the following shows the demonstration effect?
a. Ads that reveal the weak points of advertising b. Ads that make consumers want something they never wanted before c. Ads that push products that need to be shown how to use d. Ads that cause controversy among critics of advertising
What is the equation of exchange? Suppose that real GDP and velocity are constant. In this case, what effect will an increase in the quantity of money have?
What will be an ideal response?