Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to consume when real disposable income equals $400?
A. -0.45
B. 0.69
C. 1.45
D. 0.7
Answer: C
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One reason why the plants of multinational corporations abroad may have better standards than domestic contractors in low-income countries is because multinational corporations tend to reduce costs by using one standard in terms of capital equipment
and technology for all markets. Indicate whether the statement is true or false
When the macro equilibrium is above full employment, fiscal policy should be used to shift aggregate demand by the amount of
A. The difference between saving and investment. B. The AD excess, which also allows for price level changes. C. The difference between desired saving and desired investment. D. None of the choices are correct.
Suppose that the supply curve for a good is vertical. In this case we would expect
A. a tax placed on the buyer to be borne entirely by the seller. B. nothing to be sold so no tax is collected. C. a tax placed on the buyer to be borne entirely by the buyer. D. the tax to be shared equally by both buyer and seller.
One reason that financial intermediaries exist is that they:
A. earn high returns from lending their own funds. B. are the only way to obtain information. C. have developed low-cost methods to obtain information. D. are required by government regulation.