What property of the von-Neumann Morgenstern utility function is related to risk aversion?
a. Its upward slope
b. Its downward slope
c. Its convexity
d. Its concavity
d
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In Macroland autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. The vertical intercept of the aggregate expenditures model line is
A. 290. B. 0.25. C. 0.75. D. 320.
________ is defined as the change in quantity between two dates
A) Growth rate B) Improvement ratio C) Development ratio D) Progress index
Assume that all taxes are lump-sum, net exports = 0, and the marginal propensity to consume is 0.8. Then, if investment and taxes were each to fall by $100 million, the equilibrium level of income would
A) rise by $100 million. B) fall by $100 million. C) rise by $500 million. D) fall by $500 million.
Refer to the above figure. A unit tax of $2 has been placed on the good. Which of the following statements is TRUE about the vertical distance between S1 and S2?
A) The distance is less than $2. B) The distance is $2. C) The distance is more than $2. D) The distance cannot be determined with the information given.