If planned autonomous investment is 500, autonomous consumption 300, induced consumption 2500, savings 500, and government spending and taxes zero, then
A) Ep is 3300 and the economy is in equilibrium.
B) Ep is 3300 and the economy is out of equilibrium.
C) Ep is 3500 and the economy is in equilibrium.
D) Ep is 3500 and the economy is out of equilibrium.
C
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If your disposable personal income increases from $30,000 to $40,000 and your savings increases from $2,000 to $4,000 . your marginal propensity to save (MPS) is:
a. 0.2. b. 0.4. c. 0.5. d. 0.8. e. 1.0.
Which of the following will increase the demand for loanable funds?
a. a newly established consumption tax b. a decrease in the real interest rate c. an increase in the real interest rate d. creation of an investment tax credit for businesses
In a freely operating market system, queuing is most likely to occur when
A. the market clearing price increases. B. demand fluctuates unpredictably and quickly. C. demand increases gradually over time. D. selling necessities.
Suppose that the quantity of hamburgers is measured along the vertical axis and that the quantity of popcorn is measured along the horizontal axis. The vertical intercept is 10 hamburgers, and the slope of the budget line is -2. If the price of popcorn falls from $1 to $0.50, then we know that
A. the vertical intercept shifts to 5 hamburgers. B. the horizontal intercept shifts to 10 bags of popcorn. C. the vertical intercept shifts to 20 hamburgers. D. the horizontal intercept shifts to 20 bags of popcorn.