In the above figure, if we begin at S2 and the Fed buys bonds
A) the price of bonds falls, and the interest rate rises.
B) the price of bonds falls, and so does the interest rate.
C) the price of bonds rises, and so does the interest rate.
D) the price of bonds rises, and the interest rate falls.
D
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When the marginal propensity to consume (MPC) increases
A) the average propensity to save remains unchanged. B) the multiplier remains unchanged. C) the multiplier decreases. D) the multiplier increases.
What is capital income?
What will be an ideal response?
How are monopolistic ally competitive industries identified with concentration ratios?
What will be an ideal response?
The best explanation for the shape of a short run marginal cost schedule is
A. there is no fixed factor of production. B. increasing returns to scale. C. decreasing returns to scale. D. a fixed factor causes diminishing returns to other factors.