If a household's income rises from $46,000 to $46,700, and its consumption spending rises from $35,800 to $36,400, then its _____
Fill in the blank(s) with the appropriate word(s).
marginal propensity to consume is 0.86.
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The yield curve is the relationship between the:
a. Real yield (i.e., interest rate) and actual inflation. b. Real interest rate and expected inflation rate. c. Domestic yield and foreign yield. d. Nominal yield on corporate securities and the yield of government securities. e. Nominal yield and time to maturity of a security.
An income transfer contains less fiscal stimulus than an increase in government spending of the same size.
Answer the following statement true (T) or false (F)
In the United States, government purchases, as a percentage of real GDP, have generally declined since the 2001.
a. true b. false
Tacit collusion
A. is more likely to effectively raise prices in the industry when demand is elastic. B. occurs when firms engage in formal agreements to reduce output and increase prices in their industry. C. is more likely to be successful in increasing industry profits when there are a few, similar firms in the industry. D. is legal under the U.S. antitrust laws.