This topic contains a solution. Click here to go to the answer

Author Question: Which of the following events would likely cause the largest increase in current consumption? A) ... (Read 78 times)

123654777

  • Hero Member
  • *****
  • Posts: 585
Which of the following events would likely cause the largest increase in current consumption?
 
  A) a permanent increase in annual salary of 2000
  B) a one-time tax cut of 4000
  C) a one-time increase in income (e.g. a bonus) of 4000
  D) both B and C

Question 2

For a given nominal interest rate, a reduction in expected inflation will cause
 
  A) a reduction in the real interest rate.
  B) an increase in the real interest rate.
  C) an increase in investment.
  D) an increase in money demand.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jsm54321

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

A

Answer to Question 2

B




123654777

  • Member
  • Posts: 585
Reply 2 on: Jun 30, 2018
Gracias!


scikid

  • Member
  • Posts: 300
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

For a complete list of videos, visit our video library