The MPC and MPS in the economy:
Answer the question on the basis of the following table:
A. are .4 and .6 respectively.
B. are .6 and .4 respectively.
C. are .8 and .2 respectively.
D. cannot be determined from the information given.
B. are .6 and .4 respectively.
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Which of the following results in an increase in the supply of a good or service?
A) a rise in the price of the good or service B) an increase in foreign imports of the good or service C) a fall in the price of the good or service D) a smaller number of sellers producing the good or service E) higher taxes imposed upon producers of the good or service
Initial empirical evidence regarding the Phillips curve caused it to be ______ in the 1960s.
a. widely rejected b. widely accepted c. thoroughly revised d. completely abandoned
The economic system that answers the What, How and For Whom questions using prices determined by the interaction of supply and demand is a:
A. market economy. B. command economy C. soviet economy. D. traditional economy.
Interest rate (on any bond) is equal to
A. Sum of risk free (Treasury) interest rate + risk premium. B. Risk free ( Treasury) interest rate – risk premium C. Risk free (Treasury) interest rate. D. None of these.