In Macronesia, the MPC is approximately .80 . If disposable income changes from 1,000 billion pukas to 1,500 billion pukas, then consumption will change by a(n)
a. decrease of 500 billion pukas.
b. increase of 500 billion pukas.
c. increase of 400 billion pukas.
d. increase of 800 billion pukas.
c
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The three concepts of optimal capacity utilization are:
a. optimal plant size for a given output rate b. optimal cost of manufacturing c. optimal plant size d. optimal output for a given plant size e. all of these except b f. all of these except c
The Fed can increase the money supply by conducting open market sales of U.S. Treasury Bonds, or by raising the required reserve ratio
Indicate whether the statement is true or false
Monopolistically competitive firms prevent the efficient use of resources because in long-run equilibrium
A. price equals marginal cost. B. price is greater than marginal cost. C. price is less than marginal cost. D. marginal cost is less than average total cost.
A decrease in the availability of an important major resource such as oil shifts aggregate supply left.
Answer the following statement true (T) or false (F)