Refer to Table below. Given the consumption schedule in the table above, the marginal propensity to save is
Consumption
(dollars)
$1,200
2,100
3,000
Disposable Income (dollars)
$3,000
4,000
5,000
a. 0.1.
b. 0.4.
c. 0.7.
d. 0.9.
a. 0.1.
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The opportunity cost of an apartment in a rent controlled market is equal to
A) the rent charged for the apartment. B) the opportunity cost of searching for the apartment. C) the rent charged for the apartment plus the opportunity cost of searching for the apartment. D) nothing because of the surplus of apartments when there are rent controls. E) the rent charged for the apartment minus the opportunity cost of searching for the apartment.
If the U.S. dollar were to cease to be the leading international reserve currency,
A) U.S. households and businesses would be unaffected. B) U.S. households and businesses would be subject to increased exchange rate risk. C) interest rates in the U.S. would be lower. D) the U.S. monetary base would contract.
Official reserves are essential for countries that fix the value of their currencies beneath the market value.
Answer the following statement true (T) or false (F)
Assume the Marshall-Lerner condition holds. Which of the following will cause a reduction in net exports?
A) a reduction in government spending B) a reduction in investment C) an increase in foreign output D) an increase in the real exchange rate E) all of the above