Which of the following would give households an incentive to increase the amount of money they...
Which of the following would give households an incentive to increase the amount of money they save each month? People are feeling wealthier due to an increase in housing values
Consumer confidence in the state of the economy is increasing.
Interest rates are rising
Income tax rates rise
Homework Answers
Interest rates are rising.
Explanation: When interest rates rise, people can earn higher interest income by saving. So, this incentivises saving.
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Which of the following would give households an incentive to
increase the amount of money they...
An economy has the following data: real GDP $5,086 billion taxes collected by the government $481...
An economy has the following data: real GDP $5,086 billion taxes collected by the government $481 billion government spending $650 billion consumption spending $3,641 billion. If this is a closed economy, what is the value of investment spending? Enter a whole number with no dollar sign and please do not include the word billion. Which of the following would give households an incentive to increase the amount of money they save each month? O People are feeling wealthier due to...
Question 37 1.67 pts In the labor market, the adjusts to balance the quantity of labor...
Question 37 1.67 pts In the labor market, the adjusts to balance the quantity of labor supplied and the quantity of labor demanded minimum wage O efficiency average wape paid to the workers interest rate • Previous Net Not saved mour A 561 w ] 20 F3 F 9 % 5 8 # 3 7 6 4 2 Р T Y 20 W E J K H G F. S D M Question 38 167 Which of the following would...
QUESTION 19 0.326 points Save "Which of the following statements best describes the wealth effect? Households...
QUESTION 19 0.326 points Save "Which of the following statements best describes the wealth effect? Households with equity in their houses are wealthier than households that rent their housing "Expected appreciation in assets, such as home equity, may increase spending on other goods and services in the economy "Economists believe that wealthier households have a positive effect on the housing market, while low-income households have a negative effect" A 10 percent increase in homeownership is associated with a 12 percent...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a chan...
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A higher tax rate on interest income provides an incentive for private saving, but a higher...
A higher tax rate on interest income provides an incentive for private saving, but a higher interest rate provides a disincentive for private saving Select one: True False People would desire to borrow more if the nominal rate of interest is 6 percent with a corresponding inflation rate of 2 percent than if the nominal rate of interest is 5 percent with a corresponding inflation rate of 3 percent. Select one: True False Mutual funds are one type of financial...
080302 Monetary neutrality implies that an increase in the quantity of money will increase employment increase...
080302 Monetary neutrality implies that an increase in the quantity of money will increase employment increase the price level increase the incentive to save. not increase any of the above. QUESTION 5 080304 The classical dichotomy argues that changes in the money supply affect both nominal and real variables. affect neither nominal nor real variables. affect nominal variables, but not real variables. do not affect nominal variables, but do affect real variables. QUESTION 6 080305 According to the principle of...
f contractionary monetary policy is used, then which of the following would be most likely to...
f contractionary monetary policy is used, then which of the following would be most likely to enhance the effect of the contractionary policy on aggregate demand? Interest rates would increase, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate depreciation and a rise in net exports. Interest rates would increase, leading to...
1. Which of the following is true regarding spending and saving? a. Money that is spent...
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Which of the following would cause the interest rates to increase in the near future The...
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Which of the following is the best explanation of this cartoon? a. The Fed may buy...
Which of the following is the best explanation of this
cartoon?
a.
The Fed may buy bonds to increase bank reserves, but the money
supply increases and interest rates fall only if banks lend the
money. A decline in the money multiplier can defeat an increase in
the monetary base.
b.
If the marginal propensity to consume in the consumption
function is high, increases in disposable income will cause
consumers to spend more, causing a bigger rise in aggregate demand,...
An economy has the following data: real GDP $5,086 billion taxes collected by the government $481 billion government spending $650 billion consumption spending $3,641 billion. If this is a closed economy, what is the value of investment spending? Enter a whole number with no dollar sign and please do not include the word billion. Which of the following would give households an incentive to increase the amount of money they save each month? O People are feeling wealthier due to...
Question 37 1.67 pts In the labor market, the adjusts to balance the quantity of labor supplied and the quantity of labor demanded minimum wage O efficiency average wape paid to the workers interest rate • Previous Net Not saved mour A 561 w ] 20 F3 F 9 % 5 8 # 3 7 6 4 2 Р T Y 20 W E J K H G F. S D M Question 38 167 Which of the following would...
QUESTION 19 0.326 points Save "Which of the following statements best describes the wealth effect? Households with equity in their houses are wealthier than households that rent their housing "Expected appreciation in assets, such as home equity, may increase spending on other goods and services in the economy "Economists believe that wealthier households have a positive effect on the housing market, while low-income households have a negative effect" A 10 percent increase in homeownership is associated with a 12 percent...
5. In the Keynesian model which of the following would be most likely to have the largest impact on aggregate demand a. an increase in the money supply b. a change in government expenditure c. a change in investment expectations d. both a and c e. both b and c 6. In the Keynesian theory of liquidity demand and the interest rate which of the following occurs during excess supply of money. a. individuals sell bonds, driving interest rates down...
080302 Monetary neutrality implies that an increase in the quantity of money will increase employment increase the price level increase the incentive to save. not increase any of the above. QUESTION 5 080304 The classical dichotomy argues that changes in the money supply affect both nominal and real variables. affect neither nominal nor real variables. affect nominal variables, but not real variables. do not affect nominal variables, but do affect real variables. QUESTION 6 080305 According to the principle of...
f contractionary monetary policy is used, then which of the following would be most likely to enhance the effect of the contractionary policy on aggregate demand? Interest rates would increase, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate appreciation and a fall in net exports. Interest rates would decrease, leading to an exchange rate depreciation and a rise in net exports. Interest rates would increase, leading to...
Which of the following is the best explanation of this
cartoon?
a.
The Fed may buy bonds to increase bank reserves, but the money
supply increases and interest rates fall only if banks lend the
money. A decline in the money multiplier can defeat an increase in
the monetary base.
b.
If the marginal propensity to consume in the consumption
function is high, increases in disposable income will cause
consumers to spend more, causing a bigger rise in aggregate demand,...
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