If disposable income = $200 billion and the APC = 0.8, then saving
A. is $280 billion.
B. is $160 billion.
C. is $40 billion.
D. cannot be determined.
Answer: C
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a. True b. False
GDP can measure either the total income of everyone in the economy or the total expenditure on the economy's output of goods and services, but GDP cannot measure both at the same time
a. True b. False Indicate whether the statement is true or false
The Keynesian cause-and-effect sequence predicts that an increase in the money supply will cause interest rates to:
A. fall, boosting investment and shifting the AD curve rightward, leading to an increase in real GDP. B. fall, cutting investment and shifting the AD curve leftward, leading to a decrease in real GDP. C. rise, cutting investment and shifting the AD curve rightward, leading to an increase in real GDP. D. rise, boosting investment and shifting the AD curve rightward, leading to an increase in real GDP.
A nation's production possibilities curve should, ceteris paribus, shift
A. Inward if gross investment exceeds depreciation. B. Outward if net investment is positive. C. Inward if net investment is zero. D. Outward if gross investment is positive.