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.
Household Income in the United States by Quintiles, 2009
Income Inequality in the United States: 1947–2009
Saving Rate by Decile of Income per Capita
Computers Are Your Future Complete
Infant mortality by income quintile, urban Canada, 1996
E9-23 Prepare income statements Explain the difference in operating income