If real disposable income is $300 billion and real consumer expenditures are $250 billion, it can be assumed that
a. the government is spending the difference.
b. the difference is being invested.
c. households are saving the difference.
d. transfer payments make up the difference.
c
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In the above figure of a monopolistically competitive firm, the marginal cost of the last unit produced is equal to ________ and is ________ marginal revenue
A) P2; greater than B) P3; greater than C) P1; greater than D) P1; equal to
The required reserve ratio is 10 percent, and the potential change in demand deposits is $100 million. What are original excess reserves?
A) $10 million B) $100 million C) $1 million D) $1 billion
Figure 2-9
Assume that the publishing industry produces novels and textbooks, as shown in the production possibilities frontier in . Moving from point H to G, the opportunity cost of those five additional textbooks equals
a.
0.5 novels
b.
10 million novels
c.
3 novels
d.
8 novels
e.
2 novels
The Earned Income Tax Credit (EITC) is a more efficient means to redistribute income to people below the poverty line than direct cash transfers.
Answer the following statement true (T) or false (F)