Keynes thought that expectations are
a. a function of current income.
b. predictable and stable.
c. an important determinant of consumption.
d. unpredictable and influences planned investment.
C
You might also like to view...
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
Real investment spending for the past 35 years is more volatile than real personal consumption
a. True b. False Indicate whether the statement is true or false
Entrepreneurship is typically identified with which of the following?
a. professionalism and dedication b. risk-taking and creativity c. impulsiveness and leadership d. organization and sense of humor e. boring and rich
If you produce a graph with consumption spending on the vertical axis and disposable income on the horizontal axis, the relation between consumption and income will
a. be inverse. b. be transcendental. c. shift unpredictably. d. be direct.