The marginal propensity to consume rises as the absolute level of income increases
Indicate whether the statement is true or false
F
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A student has two options: she can either surf the web, or work part-time. Working part-time pays her $20 per hour. What is the student's opportunity cost of surfing the web for 5 hours?
A) $4 B) $20 C) $50 D) $100
When the Fed decides to enact expansionary monetary policy, the supply of loanable funds:
A. increases, while the demand for loanable funds decreases. B. decreases, while the demand for loanable funds increases. C. and the demand for loanable funds both decrease. D. and the demand for loanable funds both increase.
For a firm in a perfectly competitive industry
A) the demand curve is unitary elastic throughout. B) marginal revenue and product price are equal at every level of output. C) the price elasticity of demand is zero. D) more output can be sold only if the firm unilaterally lowers its product price.
Other things equal, a decrease in government spending shifts
A. the AS curve to the right. B. the AD curve to the left. C. the AD curve to the right. D. the AS curve to the left.