Author Question: Which of the following will cause an increase in current consumption? A) an increase in current ... (Read 107 times)

JGIBBSON · **on:** Jun 30, 2018

Which of the following will cause an increase in current consumption?

A) an increase in current disposable income
B) an increase in financial wealth
C) an increase in human wealth
D) all of the above
E) both B and C

Question 2

Suppose that the nominal interest rate and expected inflation both decrease by 2. Given this information, we would expect which of the following to occur?

A) an increase in the real interest rate
B) a reduction in the real interest rate
C) a reduction in investment
D) an increase in money demand
E) both A and C