How much is the marginal propensity to save when disposable income rises from $400 billion to $600 billion?
A. .25
B. .5
C. .75
D. 1.0
B. .5
You might also like to view...
The imposition of price ceilings on a market often results in
A. an increase in investment in the industry. B. a persistent surplus in the market. C. the diversion of income toward black-market suppliers. D. lower prices being offered on the black market.
"It is clear from the theory of monopolistic competition that product development is not pushed to its efficient level." This statement is
A) false because there is so much product differentiation in monopolistic competition. B) true because there is little incentive to innovate in monopolistic competition. C) false because there are so many wasteful innovations in monopolistic competition that are merely cosmetic. D) true because price exceeds marginal revenue in monopolistic competition.
A tariff is the same as a quota
Indicate whether the statement is true or false
How does an open market operation change the monetary base?
What will be an ideal response?