A household that expects a decrease in disposable income in the future will _____
a. increase its current consumption spending
b. decrease its current consumption spending
c. maintain its current consumption spending
d. first increase its current consumption spending and then decrease spending when income falls
e. first decrease its current consumption spending and then increase spending when income falls
b
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Consider the following economic agents:
a. the government b. consumers c. producers Who, in a market economy, decides what goods and services will be produced with the scarce resources available in that economy? A) producers B) consumers and producers C) the government, consumers, and producers D) consumers E) the government
When the Federal Reserve sells government bonds to the public, it:
a. increases the M1 money supply and increases the reserves of the commercial banking system. b. increases the M1 money supply, while reducing the reserves of the commercial banking system. c. reduces the M1 money supply, while increasing the reserves of the commercial banking system. d. reduces the M1 money supply and decreases the reserves of the commercial banking system.