Author Question: GDP and GNP may differ A) because some income generated by domestic production may be received as ... (Read 65 times)

tfester · **on:** Jun 30, 2018

GDP and GNP may differ

A) because some income generated by domestic production may be received as income by foreign residents.
B) because some intermediate good inputs are imported.
C) because some workers are illegal aliens.
D) whenever tariff rates become excessively high.

Question 2

The Keynesian consumption function does not display consumption smoothing, because ________.

A) the average propensity to consume rises with income
B) the marginal propensity to consume is constant
C) consumption is not affected by the real interest rate
D) consumption is not affected by future income