If Teena's consumption function is of the form [C = 200 + 0.75Y], her saving equals zero at an income level of
A. 150.
B. 675.
C. 800.
D. 1,500.
Answer: C
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The face value of money or income is called its ________ value
A) external B) real C) marginal D) nominal
The relationship between households' planned consumption expenditures and households' level of disposable real income is called
A) the consumption function. B) the savings function. C) the investment function. D) the household aggregate demand function.
Which of the following would be a debit in the U.S. balance of payments?
a. the purchase of air service from a U.S. airline by a Japanese traveler b. the purchase of a German car by an American c. a short-term loan to a Japanese manufacturer by a U.S. bank d. the purchase of U.S. grain by a Japanese firm
The gross domestic product is not a good measure of the standard of living in a nation because it:
A. Includes the cost of health insurance B. Excludes payments for pollution control equipment C. Does not account for the size of the population D. Does not account for the cost of police protection