When a family's income is low and it is spending more on consumption than it is receiving in income
A) the APC must be increasing.
B) the APC must be equal to the ratio of planned consumption expenditure to total saving.
C) the MPC must be zero.
D) some segment of the consumption function curve lies above the 45-degree line, indicating dissaving.
D
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In the case of a domestic monetary shock, floating exchange rates
A) make the home economy less vulnerable. B) make the home economy more vulnerable. C) make the foreign economy more vulnerable. D) would not affect the foreign economy. E) would not affect the home economy.
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The quantity of real loanable funds rises and monetary base rises. b. The quantity of real loanable funds rises and monetary base falls. c. The quantity of real loanable funds and monetary base fall. d. The quantity of real loanable funds and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Refer to Exhibit 6-2. How many unemployed persons are there in year 3?
a. 50 million b. 100 million c. 150 million d. 350 million e. 400 million
QN=79 (17817) Table 24-3 The table below pertains to Studious, an economy in which the typical consumer's basket consists of 5 books and 10 calculators.
a. increased from 2006 to 2007 and increased from 2007 to 2008. b. increased from 2006 to 2007 and decreased from 2007 to 2008. c. decreased from 2006 to 2007 and increased from 2007 to 2008. d. decreased from 2006 to 2007 and decreased from 2007 to 2008.