Author Question: Which of the following peoplenone of whom has any financial or housing wealthis most likely to be ... (Read 17 times)

tuffie · **on:** Jun 30, 2018

Which of the following peoplenone of whom has any financial or housing wealthis most likely to be spending all of their current income?

A) a low income person expecting continued low income throughout life
B) a low income person expecting a dramatic rise in income in the future
C) a high income person expecting continued high income throughout life
D) a high income person expecting a dramatic drop in income in the future
E) a high income person expecting to retire soon, and live for a long time afterward

Question 2

Based on our understanding of the IS-LM model that takes into account dynamics, we know that a reduction in government spending will cause

A) an immediate drop in Y and immediate increase in i.
B) an immediate reduction in i and no initial change in Y.
C) a gradual reduction in i and gradual reduction in Y.
D) a gradual reduction in i and an immediate reduction in Y.