Cameron visits a sporting goods store to buy a new set of golf clubs. He is willing to pay $750 for the clubs but buys them on sale for $575 . Cameron's consumer surplus from the purchase is
a. $175.
b. $575.
c. $750.
d. $1,325.
a
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
Use the following data to answer the next question. The disposable income (DI) and consumption (C) schedules are for a private, closed economy (an economy with no government and no international trade). All figures are in billions of dollars.Disposable IncomeConsumption$0$88080160152240224320296400368The marginal propensity to save in this economy is
A. 0.9. B. 0.1. C. 0.8. D. 0.72.
In-kind assistance programs are direct transfers of goods and services to the poor
Indicate whether the statement is true or false
Over the last 30 years, the value of the dollar has:
A. fluctuated significantly. B. changed little. C. decreased steadily. D. increased steadily.