Using this consumption function, the marginal propensity to consume is
A) 1.33. B) 0.75. C) $1.5 trillion. D) $2 trillion. E) 0.
The figure above shows three different consumption functions for a nation.
B
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Suppose the market-clearing interest rate on loans is 12%, but law-makers impose an 8% interest rate ceiling. The new law will tend to
A) increase the supply of loans. B) decrease the supply of loans. C) increase the demand for loans. D) decrease the demand for loans. E) do none of the above.
If the interest rate is 4.5 percent, what is the present value of a payment of $500 to be made one year from today?
a. $457.14 b. $468.02 c. $478.47 d. None of the above are correct to the nearest cent.
For which of the following workers would the substitution effect be more likely to outweigh the income effect of an increase in wage?
A. Air traffic controller B. Marketing manager C. Waitress D. Dentist
Suppose the Federal Reserve Banks sell $2 billion of government bonds to the public, which pays for them by drawing checks. As a result, commercial bank reserves will:
A. increase by $10 billion. B. remain unchanged. C. decrease by $2 billion. D. increase by $2 billion.