Refer to the consumption schedule above. If disposable income is $42,000, then saving is:
a. $4,000
b. $2,000
c. $0
d. $6,000
Answer: d. $6,000
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If the percentage change in the quantity demanded is not zero but is less than the percentage change in the price, demand is
A) elastic. B) inelastic. C) unit elastic. D) perfectly elastic. E) perfectly inelastic.
Refer to the table above. If the market for notebooks is perfectly competitive, the equilibrium price is:
A) $2. B) $3. C) $4. D) $5.
For banks
A) return on assets exceeds return on equity. B) return on assets equals return on equity. C) return on equity exceeds return on assets. D) return on equity is another name for net interest margin.
Among the prospective rules that set target variables directly, only the nominal GDP rule
A) provides a nominal anchor. B) is easy for the Fed to achieve. C) allows a neutral response to a supply shock. D) is insulated from the effects of unstable velocity.