The nation's disposable income increases by $400 billion and, as a result, consumer spending increases by $320 billion. Therefore, the MPC equals
a. 0.16.
b. 0.20.
c. 0.60.
d. 0.80.
e. 0.96.
d
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The larger the value of the marginal propensity to save (MPS)
A) the larger is the value of the marginal propensity to consumption (MPC). B) the smaller is the value of the multiplier. C) the larger is the value of the multiplier. D) the larger is the value of autonomous consumption.
If weak aggregate demand is pushing the economy into recession, which of the following must be true?
A) The economy is at an equilibrium that is on the long-run Phillips curve. B) The economy is at an equilibrium that is not on the long-run Phillips curve. C) Contractionary monetary policies will push the economy back to the long-run Phillips curve. D) The economy is at an equilibrium that is on the long-run aggregate supply curve.
One lesson of business: a. is tracing the consequences of a policy
b. promoting a policy change to eradicate inefficiencies. c. moving assets from lower to higher value uses, thereby creating wealth. d. None of the above
Educational attainment tends to be
a. low in countries with high population growth. b. low in countries with low population growth. c. high in countries with high population growth. d. None of the above are true.