Disposable income is not:
A. total income minus taxes.
B. what consumers base their buying decisions on.
C. the amount consumers have to spend on goods and services.
D. income before tax.
D. income before tax.
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People have a demand for liquidity because
A) liquidity increases one's options. B) the rate of interest is positive. C) they have confidence in their own future earning power. D) they prefer present goods to future goods.
What is the main difference between a temporary and permanently negative supply shock?
A) The real interest rate immediately decreases after a temporary shock while it eventually increases after a permanent shock. B) Output increases right away after a temporary shock but the impact does not last whereas for a permanent shock output permanently decreases. C) A temporary shock will see a permanent increase in inflation while inflation will only rise temporarily after a permanent shock. D) all of the above E) none of the above
A massive selling of domestic currency assets by domestic and foreign financial investors is called:
A. a speculative attack. B. protectionism. C. a currency revaluation. D. a currency devaluation.
From an economic perspective, when a consumer decides to buy more life insurance, the consumer has most likely concluded that the:
A. opportunity costs of more insurance coverage are greater than the payment for more insurance coverage. B. marginal benefits of more insurance coverage are greater than the marginal costs. C. marginal benefits of more insurance coverage have decreased. D. marginal costs of more insurance coverage have increased.