If people regard economic fluctuations as temporary,
a. spending will be less sensitive to changes in income, and the multiplier will be larger.
b. spending will be less sensitive to changes in income, and the multiplier will be smaller.
c. they will be pessimistic about the future.
d. spending will be more sensitive to changes in income.
e. spending will be independent of changes in income.
B
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The FOMC is concerned about inflation and has ________ the federal funds rate. Due to substitution effects, other ________ interest rates will ________ almost immediately
A) increased; short-term; increase B) decreased; short-term; decrease C) increased; long-term; increase D) decreased; long-term; decrease E) increased; short-term; decrease
What is the formula for calculating average fixed cost? If a firm has fixed costs of $8,500 per month and produces 1,900 units of output per month, what is its average fixed cost?
What will be an ideal response?