The marginal propensity to save plus the marginal propensity to consume always equals 1
a. True
b. False
Indicate whether the statement is true or false
True
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When a nation imports a good, its ________ surplus decreases and its ________ surplus increases
A) consumer; producer B) consumer; consumer C) producer; producer D) producer; consumer E) total; consumer
A horizontal demand curve is perfectly elastic because a change in price will induce an infinite change in quantity demanded.
Answer the following statement true (T) or false (F)
A roller coaster operator produces thrill-packed rides using electricity and a roller coaster. For the roller coaster operator, electricity is
a. an opportunity cost. b. a variable cost. c. a fixed cost. d. a sunk cost.
If net exports are positive, then
a. net capital outflow is positive (indicating an inflow of capital), so foreign assets bought by Americans are greater than American assets bought by foreigners. b. net capital outflow is positive (indicating an inflow of capital), so American assets bought by foreigners are greater than foreign assets bought by Americans. c. net capital outflow is negative (indicating an outflow of capital), so foreign assets bought by Americans are greater than American assets bought by foreigners. d. net capital outflow is negative (indicating an outflow of capital), so American assets bought by foreigners are greater than foreign assets bought by Americans.