Multiple Choice
The consumption share is negatively related to the real interest rate because a higher interest rate today
A) makes current consumption more expensive relative to future consumption.
B) lowers the price of current consumption relative to the future.
C) makes future consumption more expensive relative to current consumption.
D) reduces current savings.
E) increases the government share.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: A decrease in the United States interest
Q2: If the nongovernment share of GDP shifts
Q3: All else held constant, interest rates will
Q4: If the dollar appreciates against the Chinese
Q5: Which of the following best describes the
Q7: If GDP increases, then it is possible
Q8: The steeper the consumption share line, the
Q9: All else being equal, an increase in
Q10: Consumption is less sensitive than investment to
Q11: A tax cut has the same long-run