If your marginal propensity to consume is 0.75 and you get an additional $400 in income, you would spend ___________ on consumption.
Fill in the blank(s) with the appropriate word(s).
$300.00 (.75 x 400.00)
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What curve shows the quantity of goods and services that households, firms, the government, and customers abroad want to buy at each price level?
If the cost of producing butter increases, what will happen to the equilibrium price and quantity of butter exchanged?Price Quantity
a. Decrease Increase b. Decrease Decrease c. Increase Decrease d. Increase Increase
Suppose that the United Kingdom pegs the pound to the euro and the European Central Bank decides to use monetary policy to offset the possible inflationary effects of European expansionary fiscal policy. Would it expand, contract, or not change the European money supply?
A) expand B) contract C) not change D) The answer cannot be determined using the information provided.
One major feature of the economic perspective is:
A. that costs are more important than benefits. B. that scarcity is more important than choice. C. the idea that the economy has unproductive resources. D. the assumption of purposeful behavior by individuals.