Chapter 16 consumption macroeconomics

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An sepatrounce who faces a stringent borrowing engagement conciliate accept a preferable ultimate bent to waste compared to an sepatrounce who is quiet from borrowing.



Question 2

Assume the advantage employments ce popular closeening and advenient closeening are the similar. Then, if the endurance parameter is 0.90, an sepatrounce conciliate scarcity past closeening in the advenient referring-to to the exhibit in regulate to admit the similar bearingity of breed advantage from popular closeening as from advenient closeening.



Flag question: Question 3Question 31 pts

Consider an commissioner with a advantage employment that exhibits powercpromote ultimate advantage. If closeening rises by 10 units, then bearing advantage conciliate acception the most if the judicious smooth of closeening was

10 units.

20 units.

30 units.

The rejoinder depends on the local advantage employment.

Question 4

Consider the neoclassical pattern with log advantage where the endurance parameter can transfer on any number betwixt not attributable attributablehing and undivided. Which of the cethcoming statements is gentleman?

An acception in the endurance parameter conciliate acception popular closeening.

An acception in the endurance parameter conciliate acception twain popular and advenient closeening.

An acception in the endurance parameter conciliate acception advenient closeening.

An acception in the endurance parameter conciliate not attributable attributable attributable alter advenient closeening.

Question 5

If Ricardian equivalence holds, then

a tribute sunder today financed by tribute acceptions in the advenient conciliate kindle closeening.

a tribute sunder today financed by tribute acceptions in the advenient conciliate compress closeening.

a tribute sunder today financed by tribute acceptions in the advenient conciliate accept no issue on the bearing smooth of closeening.

a tribute sunder today financed by tribute acceptions in the advenient is the best fiscal prudence to undertransfer in a recession where closeening spending is feeble.

Question 6

If the endurance parameter is similar to 0.5 and the curiosity-behalf trounce is 5%, then advenient closeening conciliate be larger than popular closeening.



Question 7

If the endurance parameter is undivided, the ultimate bent to waste is preferable if the neoclassical closeening pattern has three determinations instead of having brace determinations.



Question 8

If the persistent proceeds conjecture is punish, which of the cethcoming events is slight to train popular closeening the most?

A worker admits an expected remuneration douceur.

An sepatrounce admits curiosity-behalf payments on an asset that has a urban curiosity-behalf trounce.

A ward finds a dollar on the reason.

A worker unexpectedly admits a greater preferment.

Question 9

In the neoclassical closeening pattern where advantage transfers a open employmental cem, an acception in the curiosity-behalf trounce conciliate unambiguously train first-determination closeening.



Question 10

In the neoclassical closeening pattern with log advantage employments ce popular and advenient closeening, an acception in the curiosity-behalf trounce conciliate acception the augmentation trounce of closeening.



Question 11

In the neoclassical closeening pattern, separates’ breed advantage depends on advenient closeening simply.



Question 12

Suppose that the curiosity-behalf trounce is 10 percent. An commissioner has judicious property of $200,000. Labor proceeds in the popular determination is $50,000. Labor proceeds in the advenient determination is $110,000. What is the commissioner’s bearing influence?





Question 13

Suppose that the endurance parameter is similar to undivided, curiosity-behalf trounces are assured, and that advantage employment u(c) is the similar ce popular closeening as it is ce advenient closeening. Then an commissioner with a ultimate advantage of popular closeening that is feebleer than the ultimate advantage of closeening in the advenient should

acception popular closeening referring-to to advenient closeening.

acception advenient closeening referring-to to popular closeening.

make no alters to closeening.

It is unusable to affirm what the commissioner should do to maximize advantage.

Question 14

Suppose the dispensation is right of some well-acquainteds that yield the persistent proceeds conjecture as polite as some well-acquainteds that are very perceptive to alters in proceeds. Then, an expected 1 percent alter in bearing proceeds conciliate definitely train bearing popular closeening by 1 percent. 


Question 15

The subject that alters in closeening are unpredictable consequently every public instruction is already transfern into representation when popular closeening decisions are made is public as

the persistent-proceeds conjecture.

the history cycle pattern of closeening.

the wild tread aspect of closeening.

powercpromote ultimate advantage of closeening.

Question 16

The scant lucidity of economic commissioners

motivates separates to establish cpromote argument on popular closeening.

motivates separates to establish past argument on popular closeening.

motivates scant borrowing.

motivates extravagant frugal.

Question 171 pts

When proceeds is variable, precautionary frugals acceptions.



Question 18

Which of the cethcoming statements encircling bearing closeening postulates is spurious?

From 1970 to 2015, well-acquainted default as a faction of U.S. GDP has openly been promotion.

From 1970 to 2015, the identical frugal trounce has openly sunk in the United States.

Recently, China’s frugal trounce has been promotion, which is harmonious with predictions of the persistent-proceeds conjecture.

From 1970 to 2015, U.S. well-acquainteds accept openly acceptiond their closeening.

 Question 19

Which of the cethcoming conciliate accept the largest acception on popular closeening?

An commissioner who yields the persistent proceeds conjecture admits an expected remuneration douceur of undivided dollar.

An commissioner who knows that tributees conciliate acception undivided dollar in the advenient admits a tribute burst of undivided dollar in the popular determination.

An commissioner is worried she conciliate promote a dollar of proceeds this determination, so she engages in precautionary frugal.

An commissioner with a stringent borrowing engagement unexpectedly finds a dollar on the foundation.

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