What can we say about APC + APS and MPC + MPS?
A. MPC + MPS = 100% of total income.
B. APC + APS = 100% of the change in income.
C. Each must sum to 1.
D. MPC + MPS always equals 1, but the sum of APC + APS can vary.
Answer: C
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The time it takes for policy makers to obtain data indicating what is happening in the economy is called
A) the data lag. B) the recognition lag. C) the legislative lag. D) the implementation lag. E) the effectiveness lag.
Firms are consumers and households are producers in the _____ market
a. stock b. bond c. labor d. product e. underground
Table 10.1 shows the cash flows and discounted cash flows for three mutually exclusive projects available to a company. Assume an interest rate of 5%. Which project has the highest internal rate of return?
A. Project A
B. Project B
C. Project C
D. It cannot be determined from the information given.
Consider a labor market in equilibrium. If both demand curve and supply curve of labor shift to the right, then the wage rate in the market will:
A. increase. B. decrease. C. remain unchanged. D. either increase or decrease or remain unchanged.