If MPC = 0.75, a $40 billion decrease in government purchases would have what size effect on the "first round" of induced added consumption?
a. $30 billion
b. $40 billion
c. $120 billion
d. $160 billion
a
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The ________ the returns on two securities move together, the ________ benefit there is from diversification
A) less; more B) less; less C) more; more D) more; greater
Always There Wireless is wireless monopolist in a rural area. There are 200 customers, each of whom has a monthly demand curve for wireless minutes of Qd = 200 - 100P, where P is the per-minute price in dollars and Q is the number of wireless minutes. The marginal cost of providing the wireless service is $0.25 per minute. If Always There charges $0.50 per minute and the largest fixed fee that it can at that price, what is the difference in profit per customer compared to when it charges $0.25 per minute and the largest fixed fee that it can at that price?
A. Profit per customer is the same in both cases, and it is equal to zero. B. Profit per customer is the same in both cases, and it is positive. C. Profit is $3.13 per customer higher at a price of $0.50. D. Profit is $3.13 per customer higher at a price of $0.25.
New technological advancements, such as robots are
a. harmful because they put people out of work. b. helpful because they improve worker productivity. c. harmful because robots are likely to have electrical problems which could cause injuries to people. d. both a and c above.
We can use the theory of consumer choice to analyze
a. why most demand curves slope downward. b. the tradeoff between work and leisure c. how interest rates affect household saving. d. All of the above are correct.