If disposable income is $900 billion when the average propensity to consume is 0.8, it can be concluded that:
a. Consumption is $800 billion
b. The marginal propensity to save is 0.1
c. The marginal propensity to consume is 0.9
d. Saving is $180 billion
d. Saving is $180 billion
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Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. The slope of Country A's production possibilities frontier is _______, and Country B's is __________.
A. 5; 3
B. 30; 3
C. 1/5; 1/3
D. 1/5; 1/3
To be counted as unemployed, a person must be looking for a job
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of a product sold by an undifferentiated oligopoly?
a. steel b. automobile c. a new drug d. breakfast cereal
When a member bank borrows reserves from the Fed,
A) it pays an interest rate called the discount rate. B) it pays no interest rate but is required to repay the loan within the stipulated period. C) it pays an interest rate equivalent to the coupon rate on long-term government bonds. D) it pays an interest rate equal to the federal funds in the reserves market.