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 60 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
Great answer, keep it coming :)

dyrone

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Certain topical medications such as clotrimazole and betamethasone are not approved for use in children younger than 12 years of age. They must be used very cautiously, as directed by a doctor, to treat any child. Children have a much greater response to topical steroid medications.

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Mark Twain supplemented his income as a writer by giving humorous lectures. Mark Twain supplemented his income as a writer by giving humorous lectures.
The Abecedarian study was designed to help very low-income African American children prepare for ... The Abecedarian study was designed to help very low-income African American children prepare for ...
Industrialized nations consumption Industrialized nations consumption
Solow Model with Saving Dependent on Income Level Solow Model with Saving Dependent on Income Level
The body’s survival depends on mechanisms that maintain internal homeostasis The body’s survival depends on mechanisms that maintain internal homeostasis
Philip wants to supplement his pension by $415 per month with income from his investments. His ... Philip wants to supplement his pension by $415 per month with income from his investments. His ...
Video: Stroke volume - preload, sarcomere length and Frank -Starling law

For a complete list of videos, visit our video library