Consumption spending that is independent of the level of disposable income is known as:
a. marginal consumption.
b. transitory consumption.
c. permanent consumption.
d. relative consumption.
e. autonomous consumption.
e
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If government raised taxes on the rich and this resulted in a decrease in productivity, the increase in taxes will still definitely make society better off
Indicate whether the statement is true or false
Suppose the demand for rental apartments decreased substantially. We would expect to observe
A) no change in rent and a sharp reduction in quantity supplied in the short run, and an even larger decrease in quantity supplied in the long run. B) a large decrease in quantity supplied in the short run, followed by a counter-reaction and an increase in quantity supplied in the long run. C) a small decrease in quantity supplied and significantly lower rents in the short run, and quantity supplied to decrease much more in the long run. D) a large decrease in quantity supplied in the short run and the long run, but much larger reductions in rent in the long run.