Consumer debt increases. What is the impact on aggregate expenditures and income?
A) Both increase.
B) Both decrease.
C) Aggregate expenditure increases and income decreases.
D) Aggregate expenditure decreases and income increases.
B
You might also like to view...
The quantity theory of money concludes that if real output is constant:
A. changes in velocity are proportional to changes in nominal income. B. changes in the price level are caused by changes in the money supply. C. real GDP and the money supply are related in the long run. D. changes in velocity are proportional to changes in the money supply.
Monetarists think that the Fed should use ________ as a target when conducting monetary policy
A) the money supply B) the federal funds rate C) the Treasury bill rate D) the inflation rate E) the unemployment rate
A marginal benefit curve shows
A) the efficient use of resources. B) the quantity of one good that must be forgone to get more of another good. C) the quantity of one good that people are willing to forgo to get another unit of another good. D) there are increasing opportunity costs.
In the national income accounts, investment includes all of the following EXCEPT:
a. stock market purchases. b. inventories. c. purchases of equipment. d. new home sales.