Question: An increase in expected future income increases ________. A. Consumption expenditure, which increases current aggregate demand B. Investment, which increases current aggregate supply C. The

An increase in expected future income increases ________.

A. Consumption expenditure, which increases current aggregate demand

B. Investment, which increases current aggregate supply

C. The demand for money, which decreases current aggregate demand

D. Future consumption expenditure and has no effect on current aggregate demand

Step by Step Solution

★★★★★

3.33 Rating (177 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A Consumption expenditu... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (2 attachments)

PDF file Icon

1448_6054778c345d4_660879.pdf

180 KBs PDF File

Word file Icon

1448_6054778c345d4_660879.docx

120 KBs Word File

Students Have Also Explored These Related Foundations Macroeconomics Questions!

Q:

Use the saving-investment diagram to analyze the effects of the following on national saving, investment, and the real interest rate. Explain your reasoning. a. Consumers become more future-oriented...

Q:

Calculate the marginal propensity to consume. At what level of disposable income will saving be zero? If expected future income increases, in which direction will the consumption function change? The...

Q:

The supply of loanable funds increases ________. A. when the demand for loanable funds increases B. when people increase saving as the real interest rate rises C. when disposable income increases or...

Q:

An increase in expected future income increases ________. A. consumption expenditure, which increases current aggregate demand B. investment, which increases current aggregate supply C. the demand...

Q:

Some countries export products at prices below the cost of production or the price charged in the domestic market. This practice is called: A.monopoly pricing. B.import substitution. C.cream...

Q:

Some countries export products at prices below the cost of production or the price charged in the domestic market. This practice is called: A.monopoly pricing. B.import substitution. C.cream...

Q:

3 0 ) An increase the expected future price of a good A ) increases its demand. B ) decreases its demand. C ) increases its supply. D ) has no effect on either its demand or its supply. 3 1 . If...

Q:

Can you tell me if my answers are correct? Thank you. An inflationary output gap: 0 occurs when actual national income exceeds potential national income. 0 is observed before the price of factors of...

Q:

Question one. 1. The following table shows the quantities of corn supplied and demanded at different prices. Price per Ton Quantity Supplied Quantity Demanded $80 700 1,200 85 800 1,100 90 900 900 95...

Q:

Explain the following statements. Que 1. 1. John just bought shares of stock in IBM for $10,000 and paid a $90 commission to his broker. How did this affect GDP? A) It had no impact on GDP. B) GDP...

Q:

When a punter kicks a football, is he doing any work on the ball while his toe is in contact with it? Is he doing any work on the ball after it loses contact with his toe? Are any forces doing work...

Q:

VenCap, Inc. is a venture capital financier. It estimates that investing £4.5 million in a particular venture capital project can return £60 million at the end of six years if it...

Q:

Briefly discuss the history of development of the HRM function

Q:

2. The following table shows the marginal benefit per year (in dollars) to all the households in a small community from the hiring of additional firefighters. The table also shows the marginal cost...

Q:

Draw graphs of the U.S. strawberry market in long-run equilibrium before the pollution crackdown: one of the U.S. market and one of a California grower. Now show the short-run effects of the...

Q:

Draw a graph to describe the maple syrup market and the cost and revenue of one maple syrup producer in 2016, assuming that all producers are making a positive economic profit because of the actions...

Q:

Draw a graph to describe the maple syrup market and the cost and revenue of one maple syrup producer in 2016, assuming that all producers are making a positive economic profit because of the actions...

Q:

Clare and Raymond each receive $55,000 from their great-aunt. Clare is worried about inflation over the next 7 years, and decides to place her money into an inflation protected account earning a real...

Q:

1. Perform the indicated operation and simplify* \f\f\f

Q:

Problem 19-3 Balance Sheet Effects Two companies, Energen and Hastings Corporation, began operations with identical balance sheets. A year later, both required additional fixed assets at a cost of...