The consumption function assumes that:
a. only disposable income affects consumption
b. only the price level affects consumption.
c. many factors other than disposable income affect consumption, and each is allowed to vary along the consumption function.
d. factors other than disposable income affect consumption, but those are held constant along the consumption function.
e. only consumer expectations affect consumption.
d
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Assume you borrow funds to buy a new car at 10 percent interest and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent
If you are correct in your assumption, your real rate of interest on the car loan will be A) 2 percent. B) 8 percent. C) 10 percent. D) 18 percent.
Other things remaining unchanged, a decline in imports is associated with an increase in gross domestic product
a. True b. False Indicate whether the statement is true or false