The consumption schedule is such that:
A. both the APC and the MPC increase as income rises.
B. the APC is constant and the MPC declines as income rises.
C. the MPC is constant and the APC declines as income rises.
D. the MPC and the APC must be equal at all levels of income.
C. the MPC is constant and the APC declines as income rises.
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Which of the following statements is true?
A. The prime rate is higher than the federal funds rate. B. The federal funds rate is higher than the prime rate. C. The prime rate is often the same as the discount rate. D. The federal funds rate and the prime rate are often the same.
The market prices of existing bonds are
A) inversely related to the interest rate. B) stated in terms of the interest rate. C) not related to the interest rate. D) directly related to the interest rate.
During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________
A) rises; rises B) rises; falls C) rises; does not change D) falls; rises E) does not change; falls
The figure above shows the U.S. demand and U.S. supply curves for cherries. At a world price of $2 per pound, the total exports of cherries from the United States to other nations equals
A) 200,000 pounds. B) 400,000 pounds. C) 600,000 pounds. D) 800,000 pounds. E) 0 pounds.