Suppose the president of a college argues that a 25 percent tuition increase will raise revenues for the college. It can be concluded that the president thinks that demand to attend this college is:
a. elastic.
b. inelastic, but not perfectly inelastic.
c. unitary elastic.
d. perfectly elastic.
b
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Suppose the marginal propensity to consume (MPC) is 0.8 and there is a $2,000 increase in autonomous consumption. Given this information, real GDP will increase by
A) $10,000. B) $2,500. C) $1,600. D) $2,000.
Speculative demand for money is a(n):
a. positive function of prices. b. inverse function of prices. c. positive function of interest rates. d. inverse function of interest rates. e. function of unexpected needs.
The four sources of income for the household are
a. taxes, subsidies, imports, interest b. taxes, interest, rent, rebates c. interest, rebates, rent, taxes d. wages, taxes, imports, interest e. wages, rent, interest, profits
Appreciation of the Japanese Yen would lead to
a. outward shift in the aggregate supply curve for Japan. b. upward shift in the aggregate demand curve for Japan. c. downward shift in the aggregate supply curve for Japan. d. downward shift in the aggregate demand curve for Japan.