Which of the following examples shows a price change in the most elastic range of a linear demand curve?
a. The price of CloseShave electric razors falls from $120 each to $100 each.
b. The price of CloseShave electric razors falls from $100 each to $85 each.
c. The price of CloseShave electric razors falls from $85 each to $80 each.
d. The price of CloseShave electric razors increases from $80 each to $100 each.
a. The price of CloseShave electric razors falls from $120 each to $100 each.
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The size of the spending multiplier depends on the marginal propensity to consume (MPC)
a. True b. False Indicate whether the statement is true or false
If there is a surplus in the market for loanable funds, then the interest rate
a. rises, so national saving rises. b. rises, so national saving falls. c. falls, so national saving rises. d. falls, so national saving falls.
Which of the following statements is true?
A. A truncated regression is a special case of a random sample selection. B. Nonrandom sample selection can arise in cases of cross-sectional and time series data, but not in the case of panel data. C. The Tobit regression model is based on endogenous sample selection. D. The censored regression model is based on nonrandom sample selection.
The government budget deficit, ________, is ________ when saving exceeds domestic investment
A) (T - G), created B) (T - G), partially financed C) (G - T), created D) (G - T), partially financed