If the real interest rate were above the equilibrium rate, there would be a shortage of loanable funds
a. True
b. False
Indicate whether the statement is true or false
False
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If the consumption function can be described as C = 200 + .80Y, the marginal propensity to save is equal to
A) -0.80. B) 0.80. C) 0.20. D) 200.
If increasing the utility of the transfer recipient is the only criterion cared about, then _____
a. a cash payment will usual be preferred to an in-kind payment b. an in-kind payment will usually be preferred to a cash payment c. a cash payment and in-kind payment are always equal d. an in-kind payment will always be preferred to a cash payment
Which of the following would increase U.S. GDP?
a. Ford Motor Company begins to produce and sell cars in China.
b. Mercedes-Benz begins to produce and sell cars in Mississippi.
c. An American investor buys 100 shares of Ford stock.
d. An American investor purchases 100 shares of Mercedes-Benz stock.
Summarize examples of how a change in demand for one good can affect demand for a related good
What will be an ideal response?