(Advanced analysis) If the equation C = 20 + .6Y, where C is consumption and Y is disposable income, were graphed:
A. the vertical intercept would be +.6 and the slope would be +20.
B. it would reveal an inverse relationship between consumption and disposable income.
C. the vertical intercept would be negative, but consumption would increase as disposable
income rises.
D. the vertical intercept would be +20 and the slope would be +.6.
D. the vertical intercept would be +20 and the slope would be +.6.
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When the Federal Reserve decreases the money supply, at the previous equilibrium interest rate households and firms will now want to
A) sell Treasury bills. B) hold less money. C) neither buy nor sell Treasury bills. D) buy Treasury bills.
If the world price of a good is equal to its no-trade equilibrium price, the country will import more of the good from other nations
a. True b. False Indicate whether the statement is true or false