Everything else held constant, if consumption expenditure increases by 65 for a 100 increase in disposable income, the mpc is
A) 0.
B) 0.5.
C) 0.65.
D) 1.
C
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Under the Sarbanes-Oxley Act of 2002, the provision that established the PCAOB to supervise accounting firms is an example of
A) regulate for transparency. B) supervisory oversight. C) separation of functions. D) socialization of information production.
When an economy relies on specialization,
A) the economy will generally produce only one product. B) the economy will usually be heavily agricultural. C) each individual in the economy produces the goods or services for which he or she has relatively the best ability. D) each individual will be assigned by the government to produce that good or service the government believes the economy should specialize in.
When market trades in water occur, we can assume that
a. the party releasing water is the loser. b. the party buying water is paying too much. c. the trade in something as important as water is immoral. d. the signals and incentives flowing from the trades help many in that water market, not just the buyer and seller directly.
Some countries have had high inflation for a long time. Others have had low or moderate inflation for a long time. Which of the following, at least in theory, could explain why some countries would continue to have high inflation?
a. High inflation countries have relatively small sacrifice ratios and so see no need to reduce inflation. b. Inflation reduction works best when it is unexpected, and people in high inflation countries would quickly anticipate any change in monetary policy. c. In a country where inflation has been high for a long time, people are likely to have found ways to limit the costs. d. In a country where inflation has been high for a long time, there are no costs to the inflation.