7. One would expect current consumption expenditures to be most closely related to:a. Gross Domestic Product
b. Net National Product
c. National Income
d. Personal Income
e. Disposable Income
b. a budget surplus exists
c. a trade deficit exists
d. a trade surplus exists
e. none of the above is necessarily the case
b. transfer payments (governmental and non-governmental)
c. purchases and sales of securities.
d. final goods.
e. none of the above
b. financed by selling Treasury debt on the open market
c. financed by creating new money--that is, by "monetizing the debt"
d. Keynesian theory holds that increased government spending reduces the level of aggregate income--it is NOT stimulative
b. The "core" CPI must increase at a slower rate than the "raw" CPI because it excludes fast rising components
c. The CPI-U, the most commonly used and reported CPI measure, is used to index most U.S. government "entitlement" payments
d. The CPI is a considered by most economists as a very reliable cost-of-living index
e. None of the above statements is true of the CPI
Answers: 7. e. Disposable Income 8. d. a trade surplus exists 9. d. final goods. 10.c.... View the full answer