As disposable income goes up, the:
A. average propensity to consume falls.
B. average propensity to save falls.
C. volume of consumption declines absolutely.
D. volume of investment diminishes.
A. average propensity to consume falls.
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Refer to the above figure. The shape of the production possibility curve indicates that production of
A) wheat is characterized by increasing costs while the production of beans is characterized by decreasing costs. B) wheat is characterized by decreasing costs while the production of beans is characterized by increasing costs. C) both goods are characterized by increasing costs. D) both goods are characterized by decreasing costs.
An increase in aggregate demand normally does not cause inflation
a. True b. False Indicate whether the statement is true or false
It can take many months or even more than a year to begin a(n) _______________ fiscal policy after a recession has started.
a. contractionary b. exploratory c. aggressive d. expansionary
You are trying to decide how to spend your last lunch dollar. You should use that dollar to buy more of the item:
A. that gives you the highest marginal utility per dollar. B. that costs the least. C. that gives you the highest average utility per dollar. D. from which you already have gained the greatest total utility.