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Author Question: Consumption is most likely to respond one-for-one with changes in current income when A) the ... (Read 80 times)

pepyto

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on: Jun 30, 2018
Consumption is most likely to respond one-for-one with changes in current income when
 
  A) the change in current income results from a one-time bonus.
  B) people believe the change in their current income is temporary.
  C) people are able to borrow as much as they wish, as long as they pay it back.
  D) the change in current income is caused by the business cycle.
  E) none of the above

Question 2

Which of the following best defines the IS curve?
 
  A) the combinations of i and Y that maintain equilibrium in the goods market
  B) illustrates the effects of changes in i on investment
  C) illustrates the effects of changes in i on desired money holdings by individuals
  D) the combinations of i and Y that maintain equilibrium in financial markets


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olderstudent

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Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

A


pepyto

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

frankwu0507

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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