The most important determinant of a household's consumption spending is:
a. its disposable income.
b. the in-kind transfers received by the household.
c. the level of education of the members of the household.
d. the interest rate.
e. the ratio of wage to non-wage income of the household.
QUESTION 2Prior to 1914, did antitrust legislation have much effect on monopoly power in the United States?
QUESTION 3Coins in the United States are manufactured and distributed by the:
a. Federal Reserve.
b. U.S. Mint.
c. International Trade Administration.
d. Federal Bureau of Investigation.
e. Comptroller of the Currency.
QUESTION 4Overconsumption of a product can be caused by imperfect information.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 5Historically, consumption spending in the United States has _____.
a. fluctuated greatly with changes in the level of income
b. remained approximately constant as a percentage of income
c. decreased as a percentage of income
d. varied inversely with the inflation rate
e. varied inversely with the interest rate
QUESTION 6The Dodd-Frank Wall Street Reform and Consumer Protection Act gives the Federal Reserve the authority to establish a reserve requirement for all financial institutions.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 7Imperfect information is a rationale for regulation.
a. True
b. False
Indicate whether the statement is true or false
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