1. why does a downshift of the consumption schedule typically involve an equal u
ID: 1120749 • Letter: 1
Question
1. why does a downshift of the consumption schedule typically involve an equal upshift of the saving schedule? what is the exception of this relationship?
2. what is the role of the Council of economic advisers (CEA) as it relates to fiscal policy? Use an internet search to find the names and university affiliation of the present members of the CEA
3. some politicians have suggested that the United States enact a constitutional amendment requiring that the federal government balance its budget annually. Explain why such an amendment if strictly enforce would force the government to enact a contrary fiscal policy whenever the economy experienced a severe recession.
4. what is the basic objective of monetary policy? what are the major strengths of monetary policy? why is monetary policy easier to conduct than fiscal policy?
Answer each quest short and consise.
Explanation / Answer
1) A downward shift in the consumption schedule typically involve an equal upshift of the saving schedule because because according to the theory , you either consume or save. that is you can use you money in consumption or in savings only. so if you are using you money more on consumption then you using in saving is less.
the exception of this relationship is the change in the disposable income. if the disposable income changes that it increase or decrease, both consumption and saving schedule will either shift up or shift down.
2) please upload it again. its against chegg policy
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