The relationship between consumption and disposable income is such that:
A. an inverse and stable relationship exists between consumption and income.
B. a direct, but very volatile, relationship exists between consumption and income.
C. a direct and relatively stable relationship exists between consumption and income.
D. the two are usually equal.
C. a direct and relatively stable relationship exists between consumption and income.
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"Personalized pricing" and "group pricing" are examples of:
A) first-degree and second-degree price discrimination, respectively. B) second-degree and third-degree price discrimination, respectively. C) first-degree price discrimination. D) first-degree and third-degree price discrimination, respectively.
If the expected path of one-year interest rates over the next five years is 4 percent, 5 percent, 7 percent, 8 percent, and 6 percent, then the expectations theory predicts that today's interest rate on the five-year bond is
A) 4 percent. B) 5 percent. C) 6 percent. D) 7 percent.