When we estimate a regression to determine the relationship between changes in consumption and changes in current income, we find that
A) there are no residuals.
B) the R2 is zero.
C) the MPC is larger than one.
D) all of the above
E) none of the above
E
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A monopolistically competitive firm produces a good or service that has no close substitutes
Indicate whether the statement is true or false
Harry spent $39,000 in 2009 and $42,000 in 2014 on goods and services. The consumer price index was 220 for 2009 and 231 for 2014 . Harry's 2009 spending in 2014 dollars is about
a. $43,290. b. $37,143. c. $40,950. d. $40,857.
Who stands to gain as a result of unanticipated inflation?
A. debtors B. persons living on a fixed income C. retired individuals D. creditors
Based on the above table, an open market operation in which the Fed purchased $200,000 of government securities would
A. create a reserve deficiency for the banking system. B. lead to a maximum potential expansion of the money supply of $2 million. C. cause demand deposits to fall by $200,000. D. lead to a maximum potential expansion of the money supply of $200,000.