Any increase in autonomous consumption is associated with:
a. an equivalent increase in autonomous saving.
b. an equivalent decrease in autonomous saving.
c. an equivalent increase in the slope of the saving function.
d. an equivalent decrease in the slope of the consumption function.
e. an equivalent movement along the consumption function.
b
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If the nominal interest rate is above the equilibrium value, then the quantity demanded of money is ________ than the quantity supplied of money, bond prices will ________, and the nominal interest rate will ________.
A. less; fall; increase B. greater; fall; increase C. less; rise; decrease D. greater; rise; increase
Horizontal equity holds that
A. those who benefit the most from government services should have the greatest voice in determining what gets produced. B. those who benefit the most from government services should bear the higher tax burden. C. those with equal ability to pay should bear unequal tax burdens. D. those with equal ability to pay should bear equal tax burdens.
The economy of Kiwiland can be characterized by Equation 24.6.EQUATION 24.6:C = 1,000 + 0.5YdT = 200G = 400I = 500Refer to Equation 24.6. The equilibrium level of income in Kiwiland is
A. 900. B. 1,800. C. 2,700. D. 3,600.
Refer to the table below. Marginal utility becomes negative with the consumption of the:
The table below shows the utility schedule for a consumer of candy bars.
A. Not shown in the table; marginal utility remains positive throughout
B. Fifth candy bar
C. Sixth candy bar
D. Seventh candy bar