According to the above figure, at an income level of Y1,

A) the economy saves an amount equal to BD.
B) the economy dissaves an amount equal to BD.
C) the average propensity to save is greater than one.
D) the marginal propensity to save is falling.


B

Economics

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When the U.S. Treasury sells bonds to the public to finance government spending and then the Fed buys the bonds through open-market purchases, the Fed is

a. monetizing the debt. b. decreasing the money supply. c. decreasing bank reserves. d. increasing the difficulty of raising funds for government spending.

Economics

Which of the following statements is true?

A) A decrease in wage rates will shift the SRAS curve to the left. B) An adverse supply shock will shift the SRAS curve to the left. C) A fall in the prices of nonlabor inputs will shift the SRAS curve to the left. D) An increase in labor productivity will shift the SRAS curve to the left. E) c and d

Economics

An example of a nontariff barrier is a:

A) limit on the total number of Honda automobiles imported from Japan. B) regulation specifying that each imported Honda automobile must meet certain emission exhaust guidelines. C) tax of $500 on each Honda automobile produced in the United States. D) subsidy from the Japanese government of $500 for each Honda automobile imported into the United States.

Economics

The slope of the consumption function equals the marginal propensity to consume.

a. true b. false

Economics