Refer to the data above. At the $320 billion level of disposable income, the average propensity to save is:
The disposable income (DI) and consumption (C) schedules are for a private, closed
economy. All figures are in billions of dollars.
A. .015
B. .075
C. .335
D. .925
B. .075
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Use the information in the following table to answer the next question.Money SupplyMoney DemandInterest RateInvestment (at interest rate shown)$400$6002%$7004005003600400400450040030053004002006200The equilibrium interest rate in this economy is ________.
A. 3% B. 4% C. 5% D. 6%
What is the distinction between nominal GDP and real GDP?
What will be an ideal response?
A nation that protects its workers from unemployment by limiting the use (by employers) of technological improvements will
a. grow more rapidly because the rate of unemployment will be lower. b. grow more rapidly because investors prefer a stable business environment rather than the uncertainties that accompany technological change. c. grow less rapidly because technological change is an important factor contributing to the growth of output. d. grow just as much as nations that adopt more rapidly technological improvements.
If the price of a good decreases by 10% and the quantity demanded increases by 5%, then at that price, the good is
A. perfectly elastic. B. perfectly inelastic. C. inelastic. D. elastic.