Suppose marginal propensity to consume (MPC) is 0.7 and there is a $1,000 increase in autonomous consumption. Given this information, real GDP will increase by

All of the following are strategies a firm with market power can adopt to increase it profits over time except:

A) mergers with, and acquisitions of, competing firms. B) erecting barriers to entry. C) setting price equal to the marginal costs of production. D) influencing the regulatory process.

Households in America tend to consume more and more as they grow older

a. True b. False Indicate whether the statement is true or false

If net exports are negative, 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.

The government's role in a developing country is important during the country's development process because building social overhead capital

A. requires a joint venture between the public and private sectors. B. can only be financed by the private sector. C. cannot be taken on by the private sector. D. can only be achieved in a developing country.