Which of the following will cause a direct increase in consumption spending?

Select one:

a.An increase in government spending

b.An increase in planned investment

c.A decrease in net export spending

d.An increase in disposable income

An increase in which of the following is most likely to increase the long run growth rate of an economy's real per capita income?

Select one:

a.The supply of money in circulation

b.The educational attainment of the population

c.The proportion of gross domestic product consumed

d.Population growth

It is suggested in the text that the demand for money is not of great importance from the point of view of monetary policy because

Select one:

a.The demand for money function is unstable

b.The supply of money is exogenous

c.Money has largely been replaced in the economy by credit and debit cards.

d.The supply of money is endogenous