The relationship between real consumption spending and real disposable income
A) is direct.
B) is inverse.
C) plots a vertical line.
D) plots a horizontal line.
A
Economics
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Who was the economist who first proposed that governments use taxes and subsidies to correct for externalities?
A) Ronald Coase B) Adam Smith C) A. C. Pigou D) David Hume
Economics
Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 20 units of clothing but no food. Suppose each has the utility function U = F ? C. The price of clothing is always $1. If the price of food is $3, does a competitive equilibrium exist? If not, what will happen to the price of food?
What will be an ideal response?
Economics