Refer to the above figure. If the MPC is unchanged and level of autonomous consumption increases, what occurs?
A) Line EBD will shift up.
B) Line ABC will drop down.
C) Line ABC shifts up.
D) Line EBD rotates and becomes steeper.
Ans: C) Line ABC shifts up.
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Which of the following explains why purchasing power parity may not hold perfectly in the long run?
A) Most countries have free markets with limited government regulation. B) Consumer preferences for goods and services across countries are very similar. C) Most countries do not impost trade barriers. D) Some goods and services produced in any country are not traded internationally.
Stefanie borrows $10,000 from a bank and withdraws $5,000 from her personal savings to start a cupcakery. The interest rate is 5% for both the bank loan and her personal savings. her opportunity cost of capital is $750
a. true b. false
In The General Theory of Employment, Interest, and Money, Keynes
A. recommended international trade to increase economic stability after recessions. B. encouraged government actions to shorten the recovery time of recessions.. C. supported free markets. D. observed budget surpluses were necessary fixes following budget deficits.
The benefit of a mixed strategy is
A. lower risks for both the players in the market. B. the element of consistency that baffles rivals. C. the element of surprise that baffles rivals. D. higher returns for both the players in the market.