The fact that some consumers will purchase a nine-ounce bottle of Evian water for $1.49, equivalent to $21.19 per gallon, illustrates the principle that the additional cost of the water is greater than the additional benefit
a. True
b. False
B
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Refer to Figure 11.5. An increase in exports is best illustrated by diagram
A) A. B) B. C) C. D) D.
Data from the United States and the United Kingdom show that the short-run Phillips curve exhibits
A) positive slopes in both nations. B) shifts that occur every five years or so. C) a great deal of shifting. D) stability with shifts occurring only when there is an internal change of government. E) stability with shifts occurring only when external forces are strong.
A small country is an international lender and its domestic supply of loanable funds increases. Consequently, the equilibrium quantity of loanable funds used in the country ________ and the country's international lending ________
A) increases; decreases B) does not change; does not change C) does not change; increases D) increases; does not change
In the Keynesian consumption function
a. consumption is a constant fraction of income. b. the marginal propensity to consume is constant. c. disposable income determines consumption. d. All of the above e. None of the above