At Very Low Levels of Disposable Income,the Greatest Likelihood Is

question 117

Multiple Choice

At very low levels of disposable income,the greatest likelihood is that

• A)autonomous consumption will be greater than induced consumption.
• B)induced consumption will be greater than autonomous consumption.
• C)autonomous consumption will be about equal to induced consumption.

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Definitions:

De Facto Dollar Standard

An international financial system in which the U.S. dollar is used as the primary reserve currency by other countries, even though it may not be officially designated.

Monetary Policy

Control of the rate of monetary growth by the Board of Governors of the Federal Reserve.

Fixed Exchange Rates

are government-set exchange rates where a currency is pegged at a certain value against another currency, basket of currencies, or another measure of value.

Gold Exchange Standard

A monetary system in which currencies are valued in terms of a specified amount of gold, and governments agree to exchange currency for gold at the set price.