Expectations that the price level will decrease in the future will _____
a. make the current consumption function flatter
b. shift the current consumption function downward
c. result in an upward movement along the current consumption function
d. result in a downward movement along the current consumption function
e. make the current consumption function steeper
b
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In building an economic model, variables that will be explained by the model are referred to as ________ variables
A) exogenous B) endogenous C) fluctuating D) demonstrative
Which of the following is the term used to describe a failing bank selling off a substantial amount of assets in a short time period in order to remain solvent?
a. fire sale b. short sale c. long sale d. liquidity sale
A decision maker can always make the best choice by:
A. including sunk costs as part of marginal costs. B. including sunk costs as part of total costs. C. ignoring sunk costs. D. subtracting sunk costs from total benefits.
Which of the following will discourage investment?
What will be an ideal response?