Hello,

I am having hard time to answer the following questions;

QUESTION 12

According to the life-cycle model,

1. richer economies save about the same fraction of disposable income as do poor countries
2. people spend much of their income when young, and borrow to finance retirement when they are older
3. rich countries save a higher fraction of disposable income than do poor countries
4. richer economies save less than do poor economies
5. the saving rate in all nations increases over time

QUESTION 14

Although consumer spending has averaged about 90 percent of disposable income, in recent years the percentage of disposable income claimed by consumption has

1. risen to about 96 percent
2. risen to 100 percent
3. risen to 99 percent
4. fallen to about 76 percent
5. risen to about 98 percent

QUESTION 16

An increase in the price level will

1. increase consumption because goods are more expensive
2. make the consumption function steeper
3. increase consumption because wages will increase
4. decrease consumption because falling interest rates make it cheaper to borrow
5. decreases consumption because the value of net wealth has decreased

QUESTION 17

An upward shift of the investment function (i.e., the one that relates investment spending to income) could be caused by

1. an increase in income
2. decrease in the interest rate
3. an increase in the interest rate
4. more pessimistic business expectations
5. an increase in business taxes

QUESTION 23

Net taxes are

1. taxes plus transfer payments
2. taxes minus transfer payments
3. an injection into the economic system
4. consumption after taxes
5. government spending minus taxes