One of the components of the consumption function is induced consumption and this consumption is induced by changes in the
a. price level
b. level of income
c. interest rate
d. level of investment
e. level of saving
B
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Which of the following is a potential operating instrument for the central bank?
A) the monetary base B) the M1 money supply C) nominal GDP D) the discount rate
Refer to the diagram where D and S are the United States' demand for and supply of Swiss francs. At the equilibrium exchange rate, E, the United States' balance of payments is in equilibrium. A shift of the demand curve to D' might be the result of:
A. a relative decline in interest rates in Switzerland.
B. a reduction in the United States' relative price level.
C. a recession in the United States that slows its rate of growth.
D. a relative decline in interest rates in the United States.