If disposable income decreased, which of the following changes in the consumption-function line would occur?
a. A rightward movement along the line
b. A leftward movement along the line
c. The entire line would shift upward
d. The entire line would shift downward
e. The entire line would shift downward and there would be a rightward movement along the new line
B
Economics
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The production possibilities curve demonstrate which of the following concepts?
A) scarcity B) choice C) trade-offs D) all of the above
Economics
A bank finds itself short of required reserves and therefore borrows from another commercial bank. The interest rate on this loan is: a. zero
b. the prime rate. c. the discount rate. d. the federal funds rate. e. the required reserve ratio.
Economics