Accelerator theory refers to the theory of
A) consumption that emphasizes that current consumer spending depends positively on the expected future growth of GDP.
B) investment that emphasizes that current investment spending depends positively on the expected future growth of government spending.
C) consumption that emphasizes that increases in consumption spending will result, through the multiplier effect, in greater increases in GDP.
D) investment that emphasizes that current investment spending depends positively on the expected future growth of GDP.
D
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Supporters of advertising claim that it:
a. makes demand for a firm's product more elastic. b. is a barrier to entry. c. promotes better quality products. d. all of these.
Consumer surplus is what one consumer is willing to pay for a commodity over what another consumer is willing to pay for the same commodity
a. True b. False Indicate whether the statement is true or false
Which of the following is a financial intermediary?
a. a mutual fund b. the stock market c. a U.S. government bond d. a wealthy individual who regularly buys and holds large quantities of government bonds
All of the following lead to a difference in income EXCEPT
A) sales tax. B) discrimination. C) the age-earnings cycle. D) marginal productivity.