The marginal propensity to consume (MPC) is equal to the inverse of the marginal propensity to save (MPS)
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Explain how advances in technology are critical to sustaining economic growth, even if capital per hour worked is consistently increasing. Provide a graph of a per-worker production function to support your answer
What will be an ideal response?
For each of the following changes, show the effect on the demand curve and state what will happen to market equilibrium price and quantity in the short run
a. Consumers expect that the price of the good will be higher in the future. b. The price of a substitute good rises. c. Consumer incomes fall, and the good is normal. d. Consumer incomes fall, and the good is inferior. e. A medical report is published showing that this good is hazardous to your health. f. The price of the good rises.
The United States has no comparative advantage in shipping, so a domestic shipping industry has no reason to exist
a. True b. False Indicate whether the statement is true or false
When a country's exports of goods are greater than its imports of goods in a given period, it has a
A. capital account surplus. B. trade surplus. C. current account deficit. D. trade deficit.