Working with the life-cycle hypothesis, we find in a cross-section study of consumption that as income rises there is a growing proportion of ________ people and thus a ________ saving ratio
A) retired, rising
B) retired, falling
C) working, rising
D) working, falling
C
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When consumers are less confident about their jobs or incomes, they are more likely to
A) reduce purchases of durable goods than nondurable goods. B) increase consumption spending and decrease investment spending. C) reduce purchases of nondurable goods and increase purchases of durable goods. D) increase investment spending and decrease consumption spending.
The states of Texas and Louisiana relax regulations on where gasoline refineries can operate resulting in more refineries. By dragging the supply curve left or right or selecting the quantity supplied, show the effect that this event will have on the gasoline market. In this scenario, presume the relaxed regulations increases the number of gasoline refineries in operation.
The modern Keynesian approach to cure a recession might include
A. Expanding the money supply or reducing government spending. B. Contracting the money supply or reducing government spending. C. Contracting the money supply or increasing government spending. D. Expanding the money supply or increasing government spending.
The paper money or currency in the United States essentially represents a(n)
A. liability of the U.S. Treasury. B. liability of the Federal Reserve System. C. liability of commercial banks and savings institutions. D. asset of the Federal government.