Assume that the Cambridge k = 0.2. If income increases by $20,000, the demand for money will change by

A) $20,000.
B) $10,000.
C) $5,000.
D) $4,000.


D

Economics

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If a country lacks ________, economic growth ________

A) a democratic form of government; cannot occur B) a proper incentive system; cannot occur C) pure capitalism; will be slower compared to other countries D) a proper incentive system; will occur at a pace suggested by the new growth theory E) economic freedom; will increase at a faster pace

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Amos Long's marginal utility of income function is given as: MU(I) = I1.5, where I represents income. From this you would say that he is

A) risk averse. B) risk loving. C) risk neutral. D) none of the above

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Commodity markets resemble

A) monopolistic markets. B) competitive markets. C) oligopolistic markets. D) factor markets.

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If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP by $200 million, then by how much would they have to change taxes?

a. -$240 million b. -$200 million c. -$180 million d. -$50 million

Economics