The larger the marginal propensity to save, other things constant, _____
a. the larger the marginal propensity to consume
b. the larger the multiplier
c. the flatter the consumption function
d. the flatter the saving function
e. the steeper the consumption function
c
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The equilibrium quantity in the above figure is
A) 200 units. B) 300 units. C) 400 units. D) 600 units.
Which of the following is NOT an example of a way in which microeconomic analysis can help in designing environmental policy?
A) Determining the optimal level of vehicle fuel efficiency standards B) Designing laws to provide incentives for firms to implement clean technologies in new vehicles C) Lobbying consumers and firms to reduce consumption of energy D) Examining the tradeoffs between ecological benefits of environmental legislation and its impacts on consumers' standard of living
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). b. There is not enough information to determine what happens to these two macroeconomic variables. c. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). d. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending remains the same. e. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive).
If the interest rate is 7 percent on euro-denominated assets and 5 percent on dollar-denominated assets, and if the dollar is expected to appreciate at a 4 percent rate, the expected return on ________-denominated assets in ________ percent
A) dollar; euros is 3 B) euro; dollars is 1 C) dollar; euros is 1 D) euro; dollars is 3