The relationship in the above figure indicates that
A) a decrease in the interest rate leads to a decrease in household income.
B) a decrease in household consumption leads to a decrease in interest rates.
C) a decrease in household income will lead household consumption to increase.
D) none of the above.
D
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According to the monetarist view, the aggregate supply curve is:
A. Upward sloping to the right. B. Perfectly vertical at the natural rate of unemployment. C. Flat or horizontal until full employment is reached. D. Flat or horizontal at all levels of output.
All of the following are roles of a exchange EXCEPT
A) instituting margin requirements on futures contracts. B) marking to market at the end of each day. C) eliminate the need for buyers and sellers of futures contracts to be concerned about the creditworthiness of each other. D) reducing the default risk involving forward contracts.