If the consumption function is C = 25 + 0.9y and income increases by $100, then savings will increase by
A) $10. B) $25. C) $90. D) $115.
A
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Which of the following government policies would most likely result in an increase in economic growth?
A) a decrease in the life of a patent from 20 years to 15 years B) a decrease in government spending on grants issued through the National Institutes of Health C) a decrease in the interest rate at which the government provides student loans D) decreased copyright protection on music and movies
Refer to Table 3-3. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. If the price of Kona coffee falls from $6 to $4, the market quantity demanded would
A) increase by 61 lbs. B) increase by 110 lbs. C) increase by 26 lbs. D) decrease by 89 lbs.
A structural budget deficit
A) appeared during the Vietnam War era from 1966-68. B) appeared after 1982 due to tax cuts and spending increases. C) peaked at 5 percent of GDP in mid-1986 and had become a structural surplus by 1997. D) all of the above.
Which of the following would be most likely to happen if salaries for physicians were dramatically reduced?
a. Patients would receive better care. b. Insurance companies would merge. c. More colleges would offer medical studies. d. Fewer people would go to medical school.