Interest is paid to
A) all holders of stock.
B) individuals who own gold.
C) owners of capital.
D) borrowers of funds.
C
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Exhibit 8-7 Consumption function
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In Exhibit 8-7, the value of the marginal propensity to consume is:
A. high for C' than for C. B. lower for C" than for C. C. lower for C" than for C'. D. the same for C, C', and C".
For which of the following time periods did the United States have a budget surplus?
A. 1990–1993 B. 1998–2001 C. 2003–2006 D. The United States did not have a surplus in any of these time periods.
For a fixed percent reduction in pollution emissions to be economically efficient, it would have to be the case that:
A. all firms be the same size. B. enforcement is vigorous. C. the marginal cost of pollution control is the same across all firms. D. large polluters reduce emissions by more than small polluters.
The aggregate supply curve slopes upward because firms
A. seek to maximize profits and output. B. normally can purchase inputs at fixed prices. C. employ technology, which is always fixed. D. purchase inputs whose prices rise as output rises.