The consumption function
a. illustrates the relationship between real disposable income and real consumption spending
b. illustrates the relationship between the price level and real consumption spending
c. is the relationship between productivity and real consumption spending
d. shows how real consumption increases when real disposable income decreases
e. illustrates the relationship between real consumption spending and employment
A
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If the Fed sells bonds through its open market operations, then there is
A) a decrease in interest rates because of the increase in the supply of bonds. B) an increase in the demand for bonds and a rise in the price of existing bonds. C) a decrease in interest rates because of the decrease in the demand for bonds. D) an increase in the supply of bonds and a fall in the price of existing bonds.
The difference between a tariff and a quota is that the revenue from the tariff goes to the
A) domestic consumer. B) domestic producer. C) domestic government. D) foreign producers. E) foreign government.
A group of nations that grants member special trade privileges is
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.
Empirical evidence suggests that: a. technological change leads to higher unemployment rates
b. the unemployment rate in the U.S. in the late 1990s was lower than that in the 1970s. c. the unemployment rate in the U.S. in the late 1990s was higher than that in the 1970s. d. changes in the growth rate of population lead to higher unemployment rates. e. increase in government regulation leads to higher unemployment rates.