Which of the following would be expected to shift the consumption function up?
A) decreases in wealth B) increases in the nation's population
C) expectations of harder times ahead D) changes in real disposable income
B
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Which produces more output: a perfectly price discriminating monopoly or a single-price monopoly?
What will be an ideal response?
Refer to Figure 4-8. With rent control, the quantity supplied is 200 apartments. Suppose apartment owners ignore the law and rent this quantity for the highest rent they can get. What is the highest rent they can get per month?
A) $1,000 B) $1,500 C) $2,000 D) $2,300
When people change their minds about what they want simply because of the timing of the decision, economists refer to it as:
A. time inconsistency. B. information overload paradox. C. cost-price inconsistency. D. time barriers to optimization.
Classical economists believed that:
a. price flexibility automatically directs market economies to full employment. b. budget deficits and surpluses were necessary for the control of economic fluctuations. c. market economies suffer prolonged periods of recessions and depressions. d. market economies are inherently unstable because of fluctuating aggregate demand.