Exam 5: The Household Consumption Sector

A) The stock market crashes
B) A price ceiling is placed on the interest rate that credit card companies can charge
C) Inflationary expectations rise
D) The market for consumer durables becomes saturated

Correct Answer

verified

Show Answer

A) -2000.
B) -1250.
C) 0.
D) 1250.
E) 2000.

Correct Answer

verified

Show Answer

A) Middle-aged Americans have been saving at a higher rate than in the past.
B) Home equity loans have been a source of funds to finance consumer spending.
C) The Japanese savings rate is nearly twice the American saving rate.
D) None is true.

Correct Answer

verified

Show Answer

A) .5.
B) .75.
C) .95.
D) 1.05.

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

A) declined by five cents.
B) stayed about the same.
C) increased by thirty cents.
D) doubleD.

Correct Answer

verified

Show Answer

A) -500.
B) 0.
C) 500.
D) 1000.
E) 2500.

Correct Answer

verified

Show Answer

A) $20 billion
B) $4 trillion
C) $6 trillion
D) $80 billion
E) over $10 trillion

Correct Answer

verified

Show Answer

A) 1,000
B) 750
C) 500
D) 0
E) -500

Correct Answer

verified

Show Answer

A) induced consumption is greater than autonomous consumption.
B) saving is greater than consumption.
C) saving is greater than disposable income.
D) consumption is greater than disposable income.

Correct Answer

verified

Show Answer

A) one-third
B) one-half
C) two-thirds
D) three-quarters

Correct Answer

verified

Show Answer

A) 4 percent of our income.
B) 6 percent of our income.
C) 40 percent of our income.
D) 60 percent of our income.

Correct Answer

verified

Show Answer

A) Of GDP is government purchases.
B) Of GDP is investment.
C) Of C is nondurable goods.
D) Of C is services.

Correct Answer

verified

Show Answer

A) Induced consumption is never negative.
B) Autonomous consumption is constant.
C) When C is positive,saving is negative.
D) When consumption is smaller than disposable income,saving is positive.
E) Each statement is truE.

Correct Answer

verified

Show Answer

A) 4,000.
B) 3,000.
C) 2,500.
D) 750.

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

A) 0
B) .25
C) .50
D) .75
E) 1.0

Correct Answer

verified

Show Answer

A) Consumption today is based on income today.
B) Consumption for future periods is based on today's income.
C) Income is never permanent because of the government's ability to tax.
D) Consumption depends on our expected income stream over time.
E) Income today depends on our expected consumption over timE.

Correct Answer

verified

Show Answer