The fraction of an increase in income that is saved is referred to as the _____
Fill in the blank(s) with the appropriate word(s).
marginal propensity to save.
You might also like to view...
Which of the following statements is equivalent to the law of diminishing marginal returns?
A. A stitch in time saves nine. B. You can’t make an omelet without breaking eggs. C. Too many cooks spoil the broth. D. If you can’t stand the heat, get out of the kitchen.
Refer to Figure 9.3. If the government establishes a price ceiling of $1.00, consumer surplus will
A) fall by $50. B) fall by $150. C) remain the same. D) rise by $50. E) rise by $150.
A firm currently has 5 workers each paid $15 per hour. If it decides to hire a 6th worker, the hourly wage increases to $18 for all workers. The 6th worker is expected to contribute to around $40 worth of output. Based on this information, the firm should
a. Hire the 6th worker since MR>MC
b. Not hire the 6th worker since MR>MC
c. Not hire the workers since MR
According to the natural rate hypothesis: a. a short-term as well as long-term trade-off exists between unemployment and inflation
b. economic fluctuations are the result of external negative and positive productivity shocks to the economy c. workers and consumers incorporate the likely consequences of government policy changes into their expectations by quickly adjusting wages and prices. d. the economy will self-correct to the natural rate of unemployment.