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

Economics

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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

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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.

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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.

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If the MPS is 0.2, the tax multiplier is

A. -1.11. B. -4. C. -5. D. -9.

Economics