The nation has its own MPC. When disposable income increases from $300 billion to $400 billion, national consumption increases from $300 billion to $360 billion. At Y = $400 billion, the MPC is:
a. 0.2.
b. 0.5.
c. 0.6.
d. 0.67.
e. 1.33.
c
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Which of the following is not correct?
a. Some states in the U.S. mandate minimum wages above the federal level. b. Most European nations have minimum-wage laws. c. The U.S. minimum wage is significantly higher than the minimum wages in France and the United Kingdom. d. The U.S. Congress first instituted a minimum wage with the Fair Labor Standards Act.
A significant lag for monetary policy is the time it takes to for a change in the money supply to change the economy. A significant lag for fiscal policy is the time it takes to pass legislation authorizing it
a. True b. False Indicate whether the statement is true or false
If investment spending decreases and all other levels of spending remain constant, then aggregate
A. Supply decreases. B. Demand increases. C. Supply increases. D. Demand decreases.
The PE ratio for a stock is
A. the predicted earnings per share of the stock divided by its current yield. B. the price of the stock divided by its earnings per share. C. the current yield of the stock. D. the predicted volatility of the stock.