This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If disposable income falls, consumption expenditure falls ________. A) by an amount that depends ... (Read 109 times)

Alainaaa8

  • Hero Member
  • *****
  • Posts: 576
on: Jun 30, 2018
If disposable income falls, consumption expenditure falls ________.
 
  A) by an amount that depends on the real interest rate
  B) so that planned expenditure remains constant
  C) by an amount smaller than the decrease in disposable income
  D) all of the above
  E) none of the above

Question 2

What do economists mean when they characterize households and firms as forward looking?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Alyson.hiatt@yahoo.com

  • Sr. Member
  • ****
  • Posts: 354
Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

Economists assume that both consumers and firms consider the future in making consumption and investment decisions today. Consumers make decisions about allocating consumption over a lifetime, while firms make investment decisions based on expectations about future profitability.


Alainaaa8

  • Member
  • Posts: 576
Reply 2 on: Jun 30, 2018
Gracias!

jordangronback

  • Member
  • Posts: 339
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Alzheimer's disease affects only about 10% of people older than 65 years of age. Most forms of decreased mental function and dementia are caused by disuse (letting the mind get lazy).

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

Elderly adults are at greatest risk of stroke and myocardial infarction and have the most to gain from prophylaxis. Patients ages 60 to 80 years with blood pressures above 160/90 mm Hg should benefit from antihypertensive treatment.

Did you know?

Blood is approximately twice as thick as water because of the cells and other components found in it.

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Risk for falls cont'd Risk for falls cont'd
Global Stratification: Income of the World's Nations Global Stratification: Income of the World's Nations
U.S. Energy Consumption U.S. Energy Consumption
Cultural Attitudes Toward Insect Consumption Cultural Attitudes Toward Insect Consumption
a solution is prepared in which a trace or small amount of Fe2+ is added to a much larger ... a solution is prepared in which a trace or small amount of Fe2+ is added to a much larger ...
In Falls, Energy Is Transmitted Along the Skeletal System In Falls, Energy Is Transmitted Along the Skeletal System
Video: Factors that influence muscle tension - Sarcomere length and force, understretched and overstretched

For a complete list of videos, visit our video library