The vertical intercept of the consumption function that represents the portion of consumption expenditure not associated with a level of disposable income is known as:
a. zero income intercept.
b. disposable income intercept.
c. autonomous consumption.
d. automatic consumption line.
c
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Depreciation is the term used when plants, equipment and housing deteriorate and wear out, thus losing their original values
Indicate whether the statement is true or false
If U.S. real GDP grew from $12 trillion one year to $12.7 trillion the next, the annual growth rate would be:
A. 5.8 % B. 94.4 % C. 105.8 % D. 5.5 %
Externalities can be either detrimental or beneficial to others
a. True b. False Indicate whether the statement is true or false
When the Federal Reserve System was first established, its founders intended the Fed to
a. assist the Treasury in collecting taxes. b. be primarily responsible for government regulations. c. pursue an active monetary policy to stabilize the economy. d. provide protection against financial panics by acting as the lender of last resort.