According to Keynes, planned consumption
A) decreases as disposable income increases.
B) is positively related to real disposable income.
C) is unstable and fluctuates widely with changes in disposable income.
D) is indirectly related to the interest rate.
B
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Examples of comparative advantage often begin with two countries that each produce the same two goods
Each country is then shown to have a comparative advantage in producing the good it can produce at a lower opportunity cost, and specializes in the production of the good for which it has a comparative advantage. How do these examples prove that both nations are made better off as a result of trade than they would be without trade?
In order to raise the rate of economic growth we would need to
A. increase the level of capital. B. reduce the level of labor. C. spend more on military goods. D. spend more on consumer goods.