If disposable income = $200 billion and the APS = 0.9, then
A) saving = $90 billion.
B) saving = $45 billion.
C) saving = $180 billion.
D) saving cannot be determined.
C
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What country in pacific Asia region has one of the worlds largest economies?
a. China
b. Japan
c. India
d. South Korea
e. Indonesia
The demand for most farm products is relatively inelastic. A drought that reduces the supply of farm products will also cause farm revenues to fall
Indicate whether the statement is true or false
Assume the economy is operating below full employment. Which of the following policy actions will allow aggregate spending to increase but will not increase the size of the government in the process?
A. Increase government spending and leave tax rates unchanged. B. Decrease government spending by more than an increase in taxes. C. Decrease tax rates and leave government spending unchanged. D. Increase government spending and taxes by the same amount.
Consider a car dealership advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a down payment of $3600 dollars. You will undertake the lease if
A) you value the lease at least $350 per month. B) you value the lease at least $250 per month, the $3600 is a sunk cost. C) you value the lease less than $350 per month. D) you value buying a new car at $400 per month.