When consumers are less confident about their jobs or incomes, they are more likely to
A) reduce purchases of durable goods than nondurable goods.
B) increase consumption spending and decrease investment spending.
C) reduce purchases of nondurable goods and increase purchases of durable goods.
D) increase investment spending and decrease consumption spending.
A
Economics
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A financial contract that obligates one party to exchange a set of payments it owns for another set of payments owned by another party is called a
A) hedge. B) call option. C) put option. D) swap.
Economics
Suppose the marginal propensity to consume is 0.75. A $150 billion increase in government spending shifts the IS curve
A) to the right by $50 billion. B) to the left by $50 billion. C) to the left by $600 billion. D) to the right by $600 billion.
Economics