If you fit a line through a scatter diagram of points that represent coordinates of consumer spending and disposable income, the slope of this line will equal the
a. propensity to consume
b. variable propensity to consume.
c. marginal propensity to consume.
d. average propensity to consume.
c
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From the table below, choose the optimum option using marginal analysis
Option Total Cost ($) 1 150 2 100 3 80 4 70 5 90 6 120 What will be an ideal response?
Wants
A) is another term for needs. B) refer to services while needs refer to goods. C) is the term used by economists instead of needs because needs are not objectively definable. D) are used by economists and refer to the same thing as needs when used by psychologists.
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.
If the money multiplier is 2.5 and the Fed buys $8 million in securities on the open market, transaction deposits could potentially
A. decrease by $25 million. B. increase by $25 million. C. decrease by $20 million. D. increase by $20 million.