In the figure above, when disposable income equals $10 trillion,
A) consumption expenditure is greater than disposable income but it is not possible to determine if consumers are saving or dissaving.
B) consumption expenditure is less than disposable income, so consumers are dissaving.
C) consumption expenditure is less than disposable income, so consumers are saving.
D) consumption expenditure is greater than disposable income, so consumers are saving.
E) consumption expenditure is greater than disposable income, so consumers are dissaving.
E
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Which of the following statements about the optimal solution to the consumer problem based on the Cobb-Douglas utility function is NOT true?
A) The cross-price elasticities of demand are zero. B) Both goods have downward sloping demand curves. C) Both goods are normal goods. D) The marginal utility of income may be negative.
The value of any economic statistic measured in terms of actual prices that exist at the time, adjusted for inflation, is the:
a. adjusted value. b. nominal value. c. real value. d. calculated value.
By increasing the required reserves, the banking industry will have more excess reserves available for lending.
a. true b. false
Suppose that a firm is currently producing 500 units of output. At this level of output, TVC = $10,000 and TFC = $25,000. What is the firms ATC?
A. $100 B. $50 C. $70 D. $20