What effect does an increase in the MPC have on the slope of the AE curve?
What will be an ideal response?
An increase in the MPC increases the slope of the AE curve and thereby makes it steeper.
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The multiple by which the commercial banking system can expand the supply of money is equal to the
A. reciprocal of the federal funds rate. B. ratio of actual reserves to required reserves. C. reciprocal of the reserve ratio. D. ratio of required reserves to actual reserves.
Along any single indifference curve the ________
A) consumer is equally satisfied with any of the combinations of goods B) level of current income is unchanged C) level of future income is unchanged D) level of current and future income is unchanged
Patrick is considering two different jobs in the same city-one as a bicycle courier, and the other as a mail room clerk. Both require equivalent training. He finds neither job very appealing, but, if they pay the same wage rate, Patrick would prefer to work as a mail room clerk. In order for Patrick to find the two jobs equally attractive, the
a. mail room job must pay a compensating wage differential b. mail room job must pay a preference premium c. courier job must pay a compensating wage differential d. courier job must involve longer working hours e. mail room job must involve longer working hours
To evaluate the potential impact of introducing the hybrid Prius auto into the U.S. market, Toyota Motor Corporation would use:
A. normative economic analysis. B. positive economic analysis. C. forensic analysis. D. negative economic analysis.