The consumption function will shift when
A. Investment changes.
B. Induced consumption changes.
C. Autonomous or induced consumption changes.
D. Autonomous consumption changes.
Answer: D
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If there is an unanticipated decrease in aggregate demand, which of the following is most likely to occur?
a. an increase in the price level b. a reduction in employment c. an increase in the growth rate of real GDP d. an increase in consumption
For which of the following problems can well-designed public policy enhance economic efficiency?
a. both externalities and market power b. externalities, but not market power c. market power, but not externalities d. neither externalities nor market power
According to the text, during World War II rationing was conducted in the U.S. through the use of
A. coupons. B. force. C. lotteries. D. queuing.
When there is a stock market decline
A. consumption and investment fall. B. consumption rises and investment falls. C. consumption and investment rise. D. consumption falls and investment rises.