According to prospect theory,
A) people are concerned with wealth levels only.
B) people are concerned with changes in wealth levels only.
C) people never use a reference level when making their decisions.
D) everybody is risk-neutral.
B
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Which of the following is NOT considered a payment in the balance of payments?
A) capital outflows B) U.S. foreign aid to other countries C) imports of goods D) exports of services
Throughout U.S. history, the debt-GDP ratio has jumped sharply higher during
A) cyclical expansions. B) stock market crashes. C) wars. D) Presidential election years.
If real disposable income increases, the average propensity to consume will
A) initially increase, and then decrease. B) remain constant. C) increase. D) decrease.