Consumption expenditures decrease when ________

A) the real interest rate falls
B) disposable income increases
C) autonomous consumption increases
D) all of the above
E) none of the above

E

Economics

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How would the Fed's changing the discount rate affect the money supply?

What will be an ideal response?

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A new law applied to a competitive market that requires that laid off workers be paid a large severance payment will

A) not generate a deadweight loss. B) increase total welfare. C) increase consumer surplus in the market. D) decrease consumer surplus in the market.

Economics