At the point where consumption equals disposable income, the average propensity to consume equals 1
a. True
b. False
Indicate whether the statement is true or false
True
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The above figure shows the market for a particular good. If the market is controlled by a perfect-price-discriminating monopoly, the deadweight loss equals
A) C + E. B) A + B + C. C) C. D) zero.
Other things the same, if the exchange rate changes from .8 euros per dollar to .9 euros per dollar, the dollar
a. depreciates so U.S. goods become less expensive relative to foreign goods. b. depreciates so U.S. goods become more expensive relative to foreign goods. c. appreciates so U.S. goods become less expensive relative to foreign goods. d. appreciates so U.S. goods become more expensive relative to foreign goods.
If real GDP grows at a constant rate of 2 percent per year, using the "rule of 72" it will take approximately ___ years for real GDP to double
a. 15 b. 20 c. 10 d. 36
According to the classical economists, an economy producing $10 million in goods and services
A. simultaneously generates the income necessary to purchase $10 million in goods and services. B. could experience a permanent surplus if no one has estimated the demand for goods and services in the economy. C. may be producing too much since the needs of people may not be this great. D. is supplying $10 million in goods and services, but could be demanding more or less than $10 million in goods and services for a very long period of time.