Suppose a bank lends you $1,000 to purchase a car. Which of the following correctly represents the changes in the bank's balance sheet before you spend the money?
a. Assets: loans, +$1,000 . Liabilities and net worth: checking deposits, +$1,000
b. Assets: loans, -$1,000 . checking deposits, +$1,000 . Liabilities and net worth: no change
c. Assets: loans, +$1,000 . checking deposits, -$1,000 . Liabilities and net worth: no change
d. Assets: checking deposits, +$1,000 . Liabilities and net worth: loans, +$1,000
e. Assets: checking deposits, +$1,000 . Liabilities and net worth: loans, -$1,000
a
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If Pat's income increased from $250,000 to $500,000 and his consumption increased from $200,000 to $300,000, what was his marginal propensity to consume?
a. 0.4 b. 0.6 c. 0.8 d. 0.9
The above graph represents a:
A. monopolistically competitive firm. B. noncollusive oligopoly firm. C. monopoly firm. D. collusive oligopoly firm.
The more times a worker performs a particular task, the more proficient the worker becomes at that task. This source of productivity increase is called
A) repetition. B) specialization. C) continuity. D) innovation.
The view that expectations change relatively slowly over time in response to new information is known in economics as
A) rational expectations. B) irrational expectations. C) slow-response expectations. D) adaptive expectations.