A change in the marginal propensity to save can be graphically represented by:
a. a movement along the investment function.
b. a movement along the saving function.
c. a parallel shift of the consumption function.
d. a parallel shift of the saving function.
e. a change in the slope of the saving function.
e
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Explain why some researchers conclude that Americans are becoming more obese because of the existence of fast-food restaurants. If fast-food restaurants have been around for over 50 years why is the trend toward obesity only a recent one? Explain
What will be an ideal response?
If the economy experiences an unanticipated demand shock and households and firms have rational expectations, there is
A) no trade-off between unemployment and inflation in either the short run or the long run. B) a trade-off between unemployment and inflation in the long run, but not in the short run. C) a trade-off between unemployment and inflation in the short run, but not in the long run. D) a trade-off between unemployment and inflation in both the short run and the long run.
Flexible exchange rates exist when
A) no one knows what the true value of a currency is. B) governments and central banks spend foreign reserves to prop up an exchange rate at a certain level. C) exchange rates are determined by forces of supply and demand. D) speculators bet that a currency will soon be depreciated.
In a sequential game, if Irene decides to enter the market, what would be Mattie's best response?
a. Accommodate b. Fight c. Run away d. Shut down