In the consumption function, consumption is caused by changes in the:
a. price level.
b. level of disposable income.
c. interest rate.
d. level of investment.
e. level of real assets.
b
Economics
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Crowding out occurs when expansionary fiscal policy leads to
A) a higher money supply and a reduction in net exports. B) a higher money supply and a reduction in the interest rate. C) a higher interest rate and a reduction in private investment. D) a higher price level and a reduction in the money supply.
Economics
Refer to Figure 6-3. Using the midpoint formula, calculate the absolute value of the price elasticity of demand between e and f
A) 0.32 B) 0.4 C) 2.5 D) 3.125
Economics