Multiple Choice
Which of the following statements is true?
A) A change in sales tax has no effect of disposable income.
B) Interest and dividend payments are not included in disposable income.
C) A decrease in transfer payments reduces disposable income.
D) Household consumption is not sensitive to changes in disposable income.
E) All of these
Correct Answer:
Verified
Correct Answer:
Verified
Q18: Which of the following statements is false?<br>A)Aggregate
Q19: Manufacturing capacity utilization in normal times typically
Q20: The spending multiplier is the ratio of
Q21: The consumption function shows the relationship between
Q22: The marginal propensity to consume is best
Q24: Equilibrium output in the short run, as
Q25: Suppose business executives become very pessimistic and
Q26: The Keynesian multiplier is the ratio of
Q27: Most short-term forecasts are based on expected
Q28: Economic fluctuations are largely a result of