The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) equals:
a. 0.5
b. the multiplier.
c. the slope of the consumption function.
d. 1.0.
e. the slope of the saving function.
d
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Which of the following relationships is likely to exhibit negative correlation?
A) The relationship between inflation in the U.S. and traffic congestion in China B) The relationship between amount saved with a bank and the interest earned C) The relationship between the amount of precipitation in a year and the number of umbrellas sold D) The relationship between level of professional training and unemployment
The mid-point method of calculating price elasticity of demand:
A. measures the percentage changes relative to a point midway between two points on a demand curve. B. measures the absolute change relative to a point midway between two points on a demand curve. C. measures the percentage change relative to a point midway between demand and supply. D. None of these is true.
Fundamental analysis shows that stock in Garske Software Corporation has a present value that is higher than its price
a. This stock is overvalued; you should consider adding it to your portfolio. b. This stock is overvalued; you shouldn't consider adding it to your portfolio. c. This stock is undervalued; you should consider adding it to your portfolio. d. This stock is undervalued; you shouldn't consider adding it to your portfolio.
How does the multiplier process work when there is an initial decrease in autonomous spending?
What will be an ideal response?