If income increases from $110,000 to $120,000 and consumption from $108,000 to $114,000 . the marginal propensity to consume is:
a. 0.40.
b. 0.60.
c. 0.94.
d. 1.60.
b
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Suppose the money supply grows at an annual rate of 10%, real GDP grows at 4%, the growth rate of velocity is 0%, and the expected real interest rate on Aaa corporate bonds averages 5.5%
Use the Fisher equation to determine the nominal interest rate on Aaa bonds. What will happen to the nominal interest rate in the long run if the growth rate of the money supply decreases to 7%?
If a nation begins to export a good,
a. the domestic price of that good will decrease b. that country will typically erect barriers to trade c. domestic producers of the good will be harmed d. domestic consumers of the good will be harmed e. both domestic consumers and domestic producers will benefit
The gap in ______________ standards between high-income and low-income countries raises concerns regarding increasing global trade and suggests that restrictions are needed to protect society.
a. environmental b. quality c. living d. employment
The market allocates goods to individuals according to the individuals'
a. desire for the good. b. ability to pay for the good. c. desire and ability to pay for the good. d. political influence.