Multiple Choice
Consumption is an important element of aggregate demand because it
A) is the most volatile component of GDP
B) accounts for roughly 70 percent of GDP
C) is very interest sensitive
D) is greatly affected by stock market activity
E) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q9: The debate about different consumption theories can
Q10: The Barro-Ricardo equivalence proposition<br>A)states that debt-financing merely
Q11: The Barro-Ricardo equivalence proposition implies that tax
Q12: The proposition that financing debt by issuing
Q13: Empirical studies of aggregate consumption have shown
Q15: If the interest rate increases,<br>A)consumption of non-durable
Q16: According to the permanent-income theory, which of
Q17: The Barro-Ricardo equivalence proposition relies on<br>A)the presence
Q18: Which of the following theories of consumption
Q19: In the Fisher diagram, which gives a