The income multiplier is
a. 1/(1 – MPC)
b. 1 – MPC
c. 1 – MPC
d. MPC
e. MPC/(1 – MPC)
A
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The difference between the maximum price a consumer is willing to pay for a product and the actual price the consumer pays is called
A. utility. B. market failure. C. consumer demand. D. consumer surplus.
A decrease in the interest rate causes
A) movement up the IS curve. B) movement down the LM curve. C) the IS curve to shift to the left. D) the LM curve to shift to the right.
Suppose the growth rate of Carolina is 5 percent. According to the rule of 70, it will take _____ years for the economy to double in size
a. 20 b. 14 c. 30 d. 40
Mary has an income of $50 . She spends her entire money either on burgers or on cookies. The price of a burger is $10, and the price of a cookie is $5 . Which of the following consumption bundles can Mary afford, given her income?
a. 5 burgers and 2 cookies b. 3 burgers and 4 cookies c. 3 burgers and 6 cookies d. 4 burgers and 3 cookies