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 108 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
YES! Correct, THANKS for helping me on my review

ryhom

  • Member
  • Posts: 366
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Disorders that may affect pharmacodynamics include genetic mutations, malnutrition, thyrotoxicosis, myasthenia gravis, Parkinson's disease, and certain forms of insulin-resistant diabetes mellitus.

Wahkeena Falls at Columbia River Gorge in Oregon in the autumn. Wahkeena Falls at Columbia River Gorge in Oregon in the autumn.
Worldwide Variations in Population and Income Levels Developed countries represent only 18% of the Worldwide Variations in Population and Income Levels Developed countries represent only 18% of the
Blood typing and cross-reactions. The blood type depends on the presence of surface antigens ... Blood typing and cross-reactions. The blood type depends on the presence of surface antigens ...
As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ... As China has embraced its version of capitalism, wealth has grown, as has consumption. Luxury goods ...
The relationship of substrate con- version (as measured by optical density) to the amount of patient ... The relationship of substrate con- version (as measured by optical density) to the amount of patient ...
Construct a Lorenz curve that shows income distribution in this society. Construct a Lorenz curve that shows income distribution in this society.
Video: Carbohydrate digestion - mouth and stomach & pancreas and small intestine

For a complete list of videos, visit our video library