Author Question: Assuming all else equal, if a household is optimistic about future income, it is likely to cause: ... (Read 74 times)

sdfghj

  • Hero Member
  • *****
  • Posts: 552
Assuming all else equal, if a household is optimistic about future income, it is likely to cause:
 
  A) the current credit supply curve of the household to shift to the left.
  B) an upward movement along the current credit supply curve of the household.
  C) the current credit supply curve of the household to shift to the right.
  D) a downward movement along the current credit supply curve of the household.

Question 2

Some economists believe that financing deficit spending by increasing taxes will lead to a lower level of national consumption and a higher level of national savings than deficit spending. The reason is
 
  A) that people do not realize that taxes have increased also.
  B) the interest rate on the debt will increase.
  C) people will forgo private consumption now as society substitutes government goods for private goods.
  D) people believe that they can consume the government provided goods and have future generations pay the bill.



kardosa007

  • Sr. Member
  • ****
  • Posts: 300
Answer to Question 1

A

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

For a complete list of videos, visit our video library