The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) always equals:
a. 1.
b. 0.
c. the interest rate.
d. the marginal propensity to invest (MPI).
a
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The lifetime income distribution of income is a ________ accurate indicator of the degree of economic inequality than the distribution of ________
A) less; of annual income B) more; of annual income C) less; of wealth D) less; annual Lorenz curves
Using a commitment strategy in:
A. either a simultaneous or sequential game can greatly alter the payoffs and outcome of the game. B. either a simultaneous or sequential game has little impact on payoffs or outcome. C. a simultaneous game can alter payoffs, but has no effect in sequential games. D. a simultaneous game has no effect, but can alter the payoffs and outcome of sequential games.
The amount of reserves remaining after reserve requirements have been satisfied is called
A. the required reserve ratio. B. legal reserves. C. federal reserves. D. excess reserves.
If the MPS is 0.2, the tax multiplier is
A. -1.11. B. -4. C. -5. D. -9.