The slope of the consumption function can be determined by dividing the change in
a. real consumption spending by the change in real disposable income
b. nominal spending by the change in nominal disposable income
c. real disposable income by the change in real consumption spending
d. nominal disposable income by the change in nominal consumption spending
e. total consumption spending by the change in autonomous consumption spending
A
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The price of good A goes up. As a result the demand for good B shifts to the left. From this we can infer that:
A) good A is a normal good. B) good B is an inferior good. C) goods A and B are substitutes. D) goods A and B are complements. E) none of the above
An increase in price expectations shifts the long-run Phillips curve, but not the short-run Phillips curve
a. True b. False Indicate whether the statement is true or false
Big Ol’ Robots is a family company that has been in business for more than 15 years. The company has decided to incorporate. What will this mean for the ownership of the firm?
a. The corporation will be owned by its shareholders. b. The company’s owners will reinvest profits to obtain more capital. c. Venture capitalists will own a significant stake in the company. d. The original owners will step down and no longer be part of the company.
Countries that persistently expand the supply of money at a rapid rate can expect to experience
a. high rates of inflation b. rapid economic growth. c. lower interest rates. d. low rates of unemployment.