If the marginal propensity to save (MPS) = 0.25, then
A. the MPC = 0.75.
B. the APC = 0.25.
C. the APS = 0.25.
D. consumption equals $750 when income equals $1,000.
Answer: A
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A) the First Bank of the United States and the Second Bank of the United States. B) the First Bank of the United States and the Central Bank of the United States. C) the First Central Bank of the United States and the Second Central Bank of the United States. D) the First Bank of North America and the Second Bank of North America.
In the open-economy macroeconomic model, the supply of dollars in the market for foreign-currency exchange is upward sloping
a. True b. False Indicate whether the statement is true or false
The budget line shows:
A. the amount of product A that a consumer is willing to give up to obtain one more unit of product B. B. all possible combinations of two goods that can be purchased, given money income and the prices of the goods. C. the minimum amount of two goods that a consumer can purchase with a specific money income. D. all possible combinations of two goods that yield the same level of utility to the consumer.
A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency mean?
A) Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit. B) Each firm produces up to the point where all scale economies are exhausted. C) Production occurs at the lowest average total cost. D) Firms use an input combination that minimizes cost and maximizes output.