Define and explain how we calculate the marginal propensity to consume and the marginal propensity to save
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The marginal propensity to consume is the proportion of an increase in disposable income that is consumed. In terms of a formula, the marginal propensity to consume, or MPC, can be calculated as ?C/?YD, where ? means "change in." The marginal propensity to save is the proportion of an increase in disposable income that is saved. In terms of a formula, the marginal propensity to save, or MPS, can be calculated as ?S/?YD.
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Which of the following is a primary market transaction?
A) Sally Wither purchases 100 shares of IBM through her broker. B) Kold Co. issues 1 million new shares through Morgan Stanley. C) Bob Hill sells 1,000 shares of Disney directly to his friend. D) Kip Peters sells 1,000 shares of Dush, Inc., which he bought in an IPO last month, through his broker.
A major institution in international regulation is the
A) WTO. B) Federal Reserve. C) FDIC. D) TSA.
The stable, long-run equilibrium in a competitive market occurs when the market price equals the lowest point on a firm's average total cost curve
a. True b. False Indicate whether the statement is true or false
Does having an absolute advantage in producing both goods mean that you’re guaranteed to have a comparative advantage in both goods? Explain your answer.
What will be an ideal response?