In this graph
A. saving is negative at all levels of disposable income.
B. saving is negative when disposable income is below 2000.
C. saving is negative when disposable income equals 2000.
D. saving is negative when disposable income is above 2000.
B. saving is negative when disposable income is below 2000.
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"As long as supply-side effects are ignored, the balanced budget multiplier is equal to zero." Is the previous statement correct or incorrect? Define the balanced budget multiplier and then explain your answer
What will be an ideal response?
Show how a monopolist maximizes its profit. Explain your graph.
What will be an ideal response?
If the supply of good A is perfectly elastic, a decrease in demand will: a. reduce the equilibrium quantity traded, but leave the price unchanged. b. reduce the equilibrium quantity traded, and reduce the price
c. reduce the equilibrium price, but leave the quantity traded unchanged. d. reduce the equilibrium price traded, but increase the quantity traded.
A particular brand of shampoo costs 6 Canadian dollars in Toronto. The nominal exchange rate is about 1.2 and the real exchange rate is .90 . These numbers imply that the U.S. dollar price of the same shampoo is about
a. $7.99 b. $6.49 c. $5.39 d. $4.49