When the real interest rate falls, the consumption function
A) does not shift and there is a movement downward along the consumption function.
B) shifts upward.
C) does not shift and there is a movement upward along the consumption function.
D) shifts downward.
E) does not shift and there is no movement along the consumption function.
B
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Which of the following economic variables is affected when the central bank adopts countercyclical monetary policy?
A) Interest rates B) Personal income tax rates C) Government spending D) Corporate tax rates
Rational choice
A) is a choice that uses the available resources to best achieve the objective of the person making the choice. B) is always efficient. C) is what you must give up to get what you want. D) is made by comparing different incentives. E) provides the answer to only the "how" question.