The CEO of Banner Enterprises adopts a new welfare policy for all employees. The policy states that the company will prevent wages from falling when there is an economic downturn, but the employees should not expect huge salary increases when the economy is strong again. This is an example of _____

A firm using Baumol's model will do one of the following if the interest rate on short-term securities went up.

A) increase the collection period B) decrease the average cash balance C) increase the average cash balance D) decrease the collection period

A decrease in wealth ________ consumption expenditure and ________

A) increases; shifts the consumption function upward B) increases; shifts the consumption function downward C) decreases; results in a movement downward along the consumption function D) decreases; shifts the consumption function downward E) decreases; shifts the consumption function upward