The consumption and saving schedules reveal that the:
A. MPC is greater than zero but less than one.
B. MPC and APC are equal at the point where the consumption schedule intersects the 45-
degree line.
C. APS is positive at all income levels.
D. MPC is equal to or greater than one at all income levels.
A. MPC is greater than zero but less than one.
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Which of the following futures contracts is available on the Chicago Board of Trade?
A) New York Stock Exchange Composite Index futures B) Foreign currency futures C) U.S. Treasury bonds D) Value Line Market Index futures
Excess reserves
A. Are loans made at above market interest rates B. Are reserves banks keep above the legal requirement C. Are reserves banks keep to meet the reserve requirement
The three fundamental questions that any economy must address are
A) What will be the prices of goods and services; how will these goods and services be produced; and who will receive them? B) What goods and services to produce; how will these goods and services be produced; and who receives them? C) Who gets jobs; what wages do workers earn; and who owns what property? D) How much will be saved; what will be produced; and how can these goods and services be fairly distributed?
Suppose Congress passes a law that states the price of gasoline may not exceed $6 per gallon (but may be lower)
If the current price of gasoline is less than $6, what impact does this law have on the current price and quantity of gasoline in the US market? A) There is a shortage of gasoline B) There is a surplus of gasoline C) Quantity supplied currently equals quantity demanded, but a surplus is possible at prices above $6 D) The law currently has no impact, and the market clears at the equilibrium price