Refer to Table 23-4. Given the consumption schedule in the table above, the marginal propensity to save is
A) 0.3. B) 0.4. C) 0.5. D) 0.6.
B
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When considering a two-input production function, one of which is increasing while the other is fixed, at some point called the point of diminishing returns, output will increase at a decreasing rate
Indicate whether the statement is true or false
Increases in the fraction of national debt held by foreigners _____ the burden of debt service on future generations _____
a. decrease; because it is easier for the borrowing nation to default on the debt b. decrease; but may make the country more vulnerable to foreign intervention c. decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically d. increase; because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside e. increase; because foreign bondholding pushes up interest rates at the date of issue, increasing crowding out
A study of the per capita consumption of gasoline: in 10 countries demonstrates that:
A. the consumption of gasoline does not appear to be related to the price of gasoline. B. higher gasoline prices reduce consumption in some of those countries, but not in others. C. higher gasoline prices do result in lower consumption of gasoline. D. higher gasoline prices actually increase the consumption of gasoline.
When a government reduces its budget deficit, then that country's
a. supply of loanable funds shifts right. b. supply of loanable funds shifts left. c. demand for loanable funds shifts right. d. demand for loanable funds shifts left.