The consumption function relates consumption spending to _____

Suppose that the IS curve is stable and money demand is lower than forecasted

If the Fed is targeting the interest rate, it notices the rate is ________ its target, and action to correct this, shifting the LM curve to the ________, causes GDP to ________ natural GDP. A) below, right, fall back toward B) below, right, rise further from C) below, left, return to D) above, left, fall back from E) above, right, rise further from

Suppose country Alpha must give up 2 units of clothing for each unit of food produced, while country Omega must give up 1/2 of a unit of clothing for each unit of food produced. If specialization and trade were to occur between these two fictitious countries, which of the following would be consistent with comparative advantage and mutually advantageous trade?

a. Omega will sell food to Alpha at a price of 1 unit of clothing for 1/2 unit of food. b. Omega will sell food to Alpha at a price of 1 unit of clothing for each unit of food. c. Alpha will sell food to Omega at a price of 2 units of clothing for each unit of food. d. Alpha will sell food to Omega at a price of 1 unit of clothing for each unit of food.